1

Lahore School of Economics

Industrial Marketing
BBA 4 Marketing Media O

Submitted to:
Maam Ayesha Aijaz

Submitted by:
Sana Swaleh Khan
Fawad Ghafoor
Adnan Bashir Qazi
Junaid Mirza
Rameesha Jehangir
Ali Jafri

Table of Contents
Submission 2................................................................................ 3
Jodhala Complex Pvt Ltd...............................................................3
Strategic planning, resource allocation process, strategic innovation
and product development.............................................................5
The Nature Of Industrial Marketing..............................................12
Understanding Industrial Markets................................................14
Types of Organizational Customers..............................................14
Producer Types...........................................................................16
Purchasing Practices...................................................................16
The Value Chain..........................................................................17
The Industrial Marketing Environment.........................................18
Marketing Strategies..................................................................19
The Interpersonal Dynamics of Industrial Buying Behavior............20
The Interpersonal Dynamics Of Industrial Buying Behavior..................22

Submission 1.............................................................................. 29

Submission 2

Jodhala Complex Pvt Ltd

Mirza Muhammad Shafi, a boiler engineer, with a vision to be one of the most renowned
businessmen of the country, put the foundation of his first firm known as Sohail Engendering
Corporation in 1976, at first Mr. Shafi had expertise in bellow parts put later diversified himself
and put foundations to 2 of his firms known to be Jodhala Complex Pvt Ltd (JCPL) and United
Mechanical Industries Pvt Ltd (UMIPL) in between 1994 to 1996. These firms initially made
auto parts for Pakistans leading car manufacturers, like Honda Atlas Cars, Indus Motors and Pak
Suzuki, but now all of these firms are so diversified now that they provide auto parts to most
vehicle manufactures. From Al-Khalid Tanks to Qinqui Motorcycles these firms provide the
pinnacle of quality to their buyers and continuously are in a pursuit to enter new markets. These
three firms collectively are known as the JUS Group of Industries and are one of the top ten
renowned companies of Gujranwala.
Jodhala Complex PVT LTD (JCPL), a firm that was established by Mr. Mirza Muhammad Shafi
in 1994 and became a part of JUS group of industries in 1996. JCPL is rapidly growing ever
since its foundation. The innovative qualities and polices of the managerial body of the company

has proven to be the most efficient and to succeed in making its name in the automotive
industries and also possessing a major share in the automotive industry of Pakistan.
With the combination of modern and traditional manufacturing facilities and advance
technological process the company has a totally self-reliance concern with the ISO certification.
By adding the NC bending machines, Wire-Cut Machines, CNC machining Centre and heavy
hydraulic presses to the firms production department, it has become easy for the firm to produce
the critical parts and sheet metal components under one roof to OEM and other engineering
industries.
JCPL provides a long range of finished products especially instrument panel, pedal assembly for
clutch and brakes, accelerators, rickshaw front bodies, as well as complex welded assemblies to
major Pakistans OEMs. Which include Honda Atlas Cars, HinoPak, Metaline Engineering
Corporation, Siwa Industries PVT LTD, and Plum Qing Qi motors Ltd etc.
JCPL has a major portion of exports in the JUS group of industries that are exported to Italy,
Spain, Saudi Arabia, Canada, USA, Republic of South Africa, Turkey, Bangladesh, Sri Lanka
and India.
Jodhala Complex indulges in 3 types of material buying. These include customer knockdown
parts, hardware and steel sheets. Hardware and steel sheets are imported from Thailand
Singapore and Japan. Raw materials are also bought from local markets present in Karachi,
Lahore and Gujranwala.
Parts from different sub venders also make a portion for the companies buying. Imports and
exports are done through credible banks on the basis of letter of credit.
The products of interest here for the project is the instrument panel and clutch/brake pedal
assembly for Honda Atlas Cars. JCPL is a proud monopoly in this aspect as no other firm makes
or supplies goods of such quality as JCPL.
Transpiration of goods is done by JCPL and occasionally third parties are hired like the Milk Run
transport in Gujranwala. JCPL is situated on the GT. Road which provides a strategic advantage
for the company because the buyer firm is within hours reach from them.

JCPL has its own website and is present at the top most Google searches for parts that the firm
makes. Details about the whole group can be found on www.cecopak.com.pk.
The given product designs are set by the headquarters of Honda in Japan through CAD/CAM
assemblies and all instructions to the suppliers. Product planning is essential to JCPL. Constant
surveys both verbal and written are sent to the buyer firm. Parts are gone through rigorous
quality check before every delivery of shipment. Honda Atlas gives out monthly reports on the
suppliers performance with respect to quality supply and test report. After 6 months the buyer
firm would pick any part and conduct a detailed research and tests for durability and quality.
New model cars require new parts that are sent to japan known as the pilot lot. The pilot lot when
approved is signed for production. The firm is at a maximum advantage according to the concept
of 4ps. Price is fixed between the buyer and the seller firm. Promotional advantage comes in the
shape of the website and the firms CEO being the member of Pakistan Association of
Automotive Parts and Accessories Manufacturers. Placement advantage the firm has is that is
situated on the GT road in the industrial region of Gujranwala where advantage of ease of
transport is available. Finally the Pak Engineering Devilment Board certifies each and every
product of this firm. JCPL continues to deliver and aim to provide quality parts and aims higher
in the aspect of trust building with its buyers.

Strategic planning, resource allocation process, strategic innovation and

product development

Strategy is a detailed plan which we make to overcome obstacles and to fulfill goal and
objectives .Its made to achieve long term plans.
Strategies,objectives and tactics of jcl jodala complex limited
Objectives:JCL (Jodala complex limited)

objectives include delivering superior value to

customers,build strong relationships with them,provide them unique experience.

Mission:Our mission is to provide quality products and service on time.Our core focus is on
efficiency and durability.

Vision:Our vision is to become market leader and delivering unique products which will depict
our core competencies.

Types of strategies
Strategies are made in accordance with budget ,resources nd how to achieve goal in long term
like to internationalize nd to consolidate like to get strong financially,strong customer base larger
profit,loyal ctomer,how to expand.Hence our company strategies align with business
environment .
Our sales strategy include
As Jcl complex is having niche market, so we give them exclusive and high quality,premium
,durable products and assure them with gurantees and waranttys.Also we motivate our staff and
departments ,as well give them training so our effectiveness and efficiency is ensured

Pricing strategy

We offer ethical pricing because of our innovative,qualititaive and customized products.Our

service and delivery methods are highly accessible.Our operations department is very efficient in
logistics and transfers equipments and raw materials on time.Also we provide value pricing as
our products are unique and innovative.
Marketing strategies
Trade shows and Expo centres

we promote our products through trade shows and expo centre and its really effective as this is
exclusive medium so many people come to attend it.In this way consumers get awared about our
innovative and quality products, its features,its design,colour, etc.This will build positive
perception in minds of consumers.
Word of mouth
Customer who purchases our products for first time always give positive feedback about it and
discuss their experiences with others.This will generate positive word of mouth.
Press:Publicity through media,channels and magazines is medium to promote JCL.

Challenges

Raw material maintenance is difficult steel is rust quickly.so prevent from rust
Proper storage is needed so workers throw in one lot so pipes can have dents so put

them separate
Honda wants 100 parts urgently so production quickly is difficult so difficult to manage
Fuel prices if increase so generator affect ,v and their functioning
Derived demand we test nd then approve
Monopoly. No competiors,honda atlas focused,niche market

Is environment not unpredictable if technological advancement is dere?

Traditional work man power was high manual banding,cnc machine cut wire through computers
within hours work happens with in minutes which reduces unpredictablity.There is also no
element of harshness,malleability as we dont have any competitors and we are first one to enter
market

Segmentation and target market

This industry is market focused ,so its targetting niche market and there only buyers are honda
altas. Its head quarters are located in japan and auto parts are always tested before being
purchased.Our inventory system,transportation and warehousing system is really efficient to
give assurance to customers.
Functional level strategies
We are making functional level strategies. Functional department strategy and

how they

coordinate and make overall business strategies

Quality control department
Our quality department is working hard and our team is highly qualified and using innovative
techniques to provide competitive edge to customers.
Operations department
Our operations department is very efficient.Our logistic department is providing quick deliveries
to customers whichadds value for them.Also this expand customer base and ensures loyalty of
them.
IT department
IT department is very flourishing in our industry because its source of communication between
employees,suppliers, and customers. Other means of communication include video conferencing,
Skype calls, online meeting tools. Email is a source of communication between customers a,
employees etc. Also its helpful in inventory management. Inventory management system tacks
the quantity of each item a company retains, stimulating an order of supplementary stock when
quantities fall below a pre-determined amount. This system is highly connected to point of sale
system(POS).POS ensures the sale of single item,oncethat item is sold it determines closed
information loop between all departments. Employees can easily access and handle large data
otherwise its difficult to retain and access large files and documents. Management Information
Systems (MIS) allows industries to monitor sales data, expenses and productivity levels. It also
enhances CRM(customer relationship management) and CRM systems .It makes interaction with
customers easy .If customers calls to repair defected part ,his conversation with expert of that

machinery will be stored in CRM system .In addition the shipping details will be there so
customers have satisfied experience with our industry
Engineering department

Engineers are responsible for developing, testing the functioning and make
modifications to mechanical equipment. Even our auto parts are sent to japan ,are fitted
in cars and are given trials. After approval we end them to engineers.

Give guidance and support to Mechanical Installations.

Finishing all duties according to applicable safety measures and highly authentic
procedures.

They use accessory equipments like screwdrivers, pliers, socket wrenches ,chisels,
hammers and punches to troubleshoot and repair complex equipment problems.This
facilitate the repairing process.

Instruct and Guide field technicians with diagnostic checks and symptom analysis.

Guiding and explaining technical issues to non-technical people.

Updating inventory of mechanical tools.

Do check and balance of malfunctions and then carrying out repairs.

Repairing or substituting defective equipment parts.

Take steps for precautionary maintenance

Understand effectively due to being experienced in implementing test plans and

procedures.

Wearing appropriate safety clothes like gloves,masks in designated safety areas.

Give training and monitor performance of trainee technicians.

Consult and learn with senior colleagues regarding technical issues.

Gives instructions to ensure cleanliness of work areas

Ensuring correct use of manual and power.

Responsibaly controlling computer-controlled industrial equipment.

Lubricating and oiling gears, shafts, bearings and other machinery parts so that yhey
can function more effectively.

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These all departments collaborate with each other before interacting and gving them total
offering.They do this in accordance with strategis.
Updating strategies with changing environment
We update our strategies according to changing demands,wants

and trends going on in

globally.According to more advancement in technology and due to changes in social needs we

update our strategies in terms of providing offering and manufacturing raw materials.We produce
such autoparts which are modern ,increases efficiency of cars ,durable, and have life time
gurantee.

Internal analysis of industry

Staff:Our staff works according to the strategies,vision and mission statements.There is high
level of coordination beween marketing,quality,IT and operations department.These all
departments work with mutual consultation.
Shared values
Our shared values are honesty,trust,loyalty,professionalism and quality.
Skill
Our management is highly skilled,experienced and highly qualified.Each department staff is
very

competent

and

know

their

particular

task

like

financing,budgeting,inventory

management.etc
Monitoring environment through pestel
Pest political,economic,social,technology,legal
Economic factors
According to pest analysis Economic factors affect JCL complex because rise in petrol price may
affect the functioning of generators .

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As far as legal environment is concerned
Safe Manufacturing Environment

As far as legal and ethical issues are concerned our business give importance to safe work
environment.The use and installation of machineries is done through a very systemized and safe
procdure. Which is aligned to both legal and ethical rules..Still our workers give preference to
wearing protective gloves and they maintain balance between productivity,inconvenience and
maintenance
Safe Products
Our logistic department delivers products on time and send only those products which are easy to
handle and are being tested before delivered.Dangerous prouducts are unethical and illegal so we
dont prefer them to transport.
According to SWOT analysis
Strengths
Our strengths are we have iso 14000 and 19000 certifications .In addition to this we have upto
par production.Also we produce unique products as we are in monopoly.Furthermore we have
diverse business.
Weaknesses
Raw materials rust in winters and monsoon
Threats
As steel is non renewable resource so it may downgrade quality.
Customer analysis
,Monitoring environment
Internal environment
When we have to monitor internal environment we have to look at financial resources,that
whether we have budget to implement and make strategies like to advance technologically ,to
produce sustainable and environment friendly products products.We increase our market share
by exporting products and increasing customer base .Our resource allocation is very efficient

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because after huge investments we get good profit margins and sale returns.Its productive
because we have loyal customers.
Customer

relationship:

We

build

customer

relationship

by

ensuring

gurantees,warrantees,deliverability,maintainence and premium quality with innovative design

features, sustainability products. Also our manufacturing process is very environment friendly
with use of technologically adavanced machineries like durable and multifunctional wielding
machines

,muffler

flanging

machines,resonator

stuffing

machines,robotic

wielding

lines,automatic ridge locking machines.Leak testing machines.

How company uses competencies, capabilities to face challenges?
Due to our highly skilled, experienced and well qualified employees we are able to face
challenges.

The Nature Of Industrial Marketing

JCPL is basically a B2B organization, which is also an OEM, and firstly I will be looking at its
product exchange, information exchange, financial exchange and social exchange process:
Product exchange-at JCPL and inline with the quality maintenance under product exchange,JCPL
has its products tested in a 5 bench process when purchasing their products so as to ensure top
quality through this product exchange process and customer satisfaction as a whole.
Information exchange-with the information exchange process at JCPL,guidelines and vital
information regarding the products are sent from our suppliers in Japan so as to ensure easy
assemblement and operations of the products. We also provide our customers the leeway of if 3
parts from a shipment are defected and not up to par, the whole order can be sent back so as to

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show them the trust and emphasis we have on providing top quality products for them. However
an order has never been sent back to us up to date.
Financial exchange-in line with this aspect, most exchanges are done through letter of credits
whereby banks play the role of intermediaries however we also are open to cash exchanges as
well.
Social exchange-we have been working with Honda Atlas since 1996 and associated with
PAAPM aswell,and we do have a very personal relationship and great trust with our clients so as
to build and maintain long term relationships eg:we have an over 20yr relationship with Honda
Atlas.
Derived Demand-at JCPL we are greatly influenced by our end consumers as the all in all
influence the products we purchase and supply to them in relation to what they demand as a
whole. This will be further exemplified with the example below:
Iron ore-Steel ore-Instrument panels-Cells-Consumer
With the above example if the end consumers demand goes up for cells, this will in turn lead to
an increase in the demand for instrument panels, steel ore and iron ore as well all indicating how
our products have a derived demand which is greatly influenced by the end consumer.
Joint demand-we also have a joint demand for our products and this is basically when the
demand for one product increases the demand for a jointly demanded product will also go up
and to further elaborate on this with an example: at JCPL if the demand for cells goes up the
demand for instrument panels will also increase and under these instrument panels we have
customer knockdown parts such as springs and bolts which will all be jointly demanded in
relation to whether demand increases or decreases.

Industrial vs. Consumer Markets

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B2B(JCPL) versus B2C(Honda Atlas):

Number of buyers-in B2C the number of buyers is much higher then in B2B.
Size of orders: in B2C the size of orders are much smaller as compared to in B2B whereby the
size of orders are much bigger.
Value of orders: in B2C the value of orders is much lower as compared to B2B whereby the
value of orders is much higher.
Level of risk: in B2C the level of risk is much lower as compared to in B2B whereby the level of
risk is much higher.
Complexity of decision: in B2C the decision making process is less complex as compared to in
B2B where the decision making is more complex.
Information search: in B2C this is much lower as compared to in B2B whereby it is much higher.
Time perspective: in B2C this is much shorter as compered to in B2B where it is more long term
based.
Role of customer: in B2C they are more passive where as in B2B they are much more active.
Market structure: in B2C this is more diversified whereby in B2B it is more concentrated
Competition:in B2C it is more monopolistic whereby in B2B it is much more oligopolistic.
Product:in B2C they are less technical whereby in B2B products are more Technically complex.
Price:in B2C this is based more on retail pricing whereby in B2B it is more competitive bidding.
Place:in B2C it is more Geo disbursed whereby in B2B it is more Geo concentrated.
Promotion:in B2C this is done more so through Ads whereby in B2B is done more through sales
reps.
Demand:in B2C the demand is more direct whereby in B2B it is more joint demand and derived
demand.

Understanding Industrial Markets

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Types of Organizational Customers

The JUS Group of Industries has a considerable amount of customer base and has a wide array of
customer types from OEMs to donations to the NGOs; JUS plays a vital role as a major supplier
to the automotive industry of Pakistan. But our prime focus is on Jodhala Complex Private
Limited, a major part of the JUS Industries, and to which companies it supplies its products to.
Jodhala Complex Private Limited is a supplier firm to many customers. Jodhala Complex
provides to the following types of commercial enterprises. These are divided into further
respective categories;

Industrial Distributors

Provide economic utilities of form, time, place, and possession to manufacturers

Creates assortments of products from many manufacturers

Particularly useful for reaching customers too small to justify direct sales efforts

In this case JCPL provides goods to ALKA Chemicals Private Limited, Karachi and Thermo Sole
Private Limited, Lahore. The goods that JCPL provides here are the metal barrel covers that are
needed to seal barrels that contain useful chemicals.

Value-Added Resellers

More than just a distributor or wholesaler.

Provides unique offering enhancements tailored to a customers needs by

combining products/services from other manufacturers.

Creates a value network at the user level.

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All of the metal waste from making different steel based products is scraped. That scrap is sold
to blast furnaces throughout the country to be made into metal sheets again or the extraction of
pig iron for other raw material purposes.

Original Equipment Manufacturers (OEMs)

Purchase products and incorporate those products into their products.

Usually the largest-volume users of goods and services.

JCPLs most important function I to supply goods to OEMs, in this JCPL provides with top of the
line products which include instrument panel assemblies and clutch, brake and accelerator paddle
assembly, Exhaust Silencers, Air cleaners for major Automotive OEMs of Pakistan like Honda
Atlas Cars Pvt Ltd., HinoPak Pvt Ltd., Metaline Industries Pvt Ltd. and Qinqui Motorcycles Pvt
Ltd. respectively.
Sohail Engineering Corporation provides bellow parts to Al-Khalid and Pakistan Railway which
puts government as our customers as well.

Producer Types

JCPL makes Component Parts and Manufactured Materials. As the parts that are given to Honda
Atlas become the part of the final good, which in this case is a car, serve as a component part of
the final good. A component part usually retains identity even when incorporated into the
customers product. For Example, the instrument panel wont loose its from when its fitted in
the final good which is the car. For Component Parts, Direct selling is done to large OEMs

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(Original Equipment Manufacturers) and users, but indirect selling through industrial distributors
/ dealers becomes cost effective for smaller volume OEMs and users.

Purchasing Practices

JCPL indulges in 3 types of raw material purchases;

CKD Parts (Customer Knockdown Category) include product test benches, necessary

tools etc.
Hardware ( Springs, Bolts, etc.)
Steel Sheets

JCPL purchases its raw materials from both local and foreign markets. These raw materials
include CKD parts, Hardware, Steel Sheets. CKD and Hardware come from the head office in
japan, whereas steel sheets are either acquired locally from Moeen Market Karachi, Landaa
Bazaar Lahore and Javed Sheet Gujranwala. Raw Materials are tested by the firms worthy
engineers and are examined for likelihood of rusting of the sheet which determines its quality.
Best quality raw materials are selected to make high quality parts. A good quality purchase leads
to improving operational efficiency & contribute to firms competitive advantage.

The Value Chain

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JCPL is situated in the industrial side of Gujranwala on the GT road which gives us a
competitive advantage as we are within an hours reach from our customer. The firm is in 25
canals and is a two story building. This gives JCPL ample room to conduct its operations. The
firm also has highly experienced personnel that have a complete knowhow of their field. By
using CNC wire Cut Machines JCPL has top of the line cutting edge technology that is very vital
in the automotive market. JCPLs products are ISO 19000 certified and is making parts for its
core buyer since 1996. Producing and delivering within the deadline and having the least
amount of rejections in the lots dispatched, thanks to the 8-step Product testing process, JCPL is
one of the top vendors of Honda Atlas Cars Private Limited. All of these factors add value to the
product and ensure high satisfaction of the buyer firm.

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JCPL understands its prospective customers, what customers perceive as valuable, and how
prospects might be persuaded to change their minds, that is why JCPL indulges in sending
surveys to the buyer firm in order to track the degree of satisfaction that the buyer gets.

The Industrial Marketing Environment

The buyer-seller interface between JCPL and Honda Atlas is the direct interface between both
buyer and seller and includes input suppliers, distributers, facilitators, and competitors. The raw
materials and components are purchased through JCPL in order to make their OEM that will later
be sold to Honda Atlas. The distributer of JCPL and the parts that they get from their supplier are
both dependent on joint demand as they get all their parts from a specific firm. These are the
instrument panel, clutch break panel assembly. Facilitators helps to administer the physical flow
as the goods are delivered when required. There is no competition in JCPL as they are the only
company in Pakistan that can make these parts for Honda. Publics do play a role in in the
Industrial Marketing environment but are nit necessarily as important as the buyer-seller
interface. The main financial public that JCPL utilizes is MCB or Muslim Community Bank as
they use leander of credit LoC when they get their specific parts or necessary machinery. There is
little to no use of independent press to affect JCPL as they do have a local newspaper in
Gujranwala but it is not used to mention anything about the company in particular. In the
category of public interest groups there is no foundation or organization that is particularity
against JCPL or that does indorse JCPL. There is no outcry or response from the general public
in response to JCPL and Honda Atlas. The internal publics of JCPL are relatively simple as they
go according to the basic hierarchy of structure of an organization as the CEO is at the top and all
the other members are below including board of directors and managers. Their moral is kept high
and helped to achieve great production throughout the company. Through the derived nature of
demand there would be a direct correlation on the demand for Honda cars as well as for
the demand for the parts needed to produce those cars. So it is clear there are
economic influences for JCPL. The materials and chemicals that are used in JCPL do not have an

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adverse affect on the environment as they are very minor as compared to other companies in
Pakistan. There has never been an accident or mis operation in the factor that has resulted in any
harm to an individual or the environment. In the realm of the sociocultural environment the
consumer or the end user of these products that are produced by JCPL is becoming more aware
of the parts used in cars and how they affect the overall performance of the car. It is becoming
very important to keep Honda Atlas as informed as possible as they keep the consumer more
informed. If there is an issue with a portend the quality assurance members from both companies
do not catch it that will greatly affect the performance of the Honda vehicle directly. In the
competitive environment there is no competition between JCPL and another company as
they own a pure monopoly on the business and continue to operate their factory and provide to
Honda Atlas. They have greatly maintained that their batch has never been rejected as minor to
little to problems occur in batches every now and then. The demographic environment is
very important for JCPL, as they need to know how much demand is going in the market and
how many Honda cars will be produced in order to provide appropriate parts.
Through technological influences are not extremely high in this field like in telecommunication
but in JCPL there is need for advancement in technology. In terms of government influence in
the company they do not have much ground except that they are simple tax payers.

Marketing Strategies

Strategies for managing the industrial marketing environment:

Competitive aggression is not viable in this cause as JCPL is the only current supplier of these
Honda parts and those that are imported internationally must go through extensive screening and
also have a higher rate that they are charged at. Competitive pacification is also not a viable
strategy because there is no competitor outside the company. While there is a scope for Political
and Legal strategies as the government places a ban on the companies that important from an
international means so that the development of their local industries can grow giving JCPL
sustained growth. However, we can make information available to the regulators but not in the

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form of extensive advertising rather on the platform of social media. Cooperative strategies
cannot be established with the international suppliers because there is a ban on their products but
they can however, help by supplying our products in the case of an emergency so they can be
kept as a supplier to our firm that then sells to Honda Atlas. In strategic maneuvering JCPL has
already entered into Domain selection as their market that they are currently in is untapped and
does not have any competition as regulation also favors them. Diversification could be the
ultimate goal of JCPL as once they have sustained growth they can move from a single site to a
multiple site and supply internationally but would not have the same support from the
international community as they do from the local government.

The Interpersonal Dynamics of Industrial Buying Behavior

The buying decision that Honda Atlas initially makes is based on the concept of new task since
they initially were purchasing clutch break paddles for the first time. There was a long evaluation
of the parts in the initial purchase as they finally came to the conclusion this was the idea
purchase through long consideration of all the steps in the buy grid model. There was not much
case of modified rebuy as the quality of the materials was up to par as well as the price and there
was no need to change the supplier or fine a new alternative. There was also the fact that no other
supplier produced these parts for Honda in Pakistan so it would be very difficult to acquire these
parts from abroad with all the taxes being placed in imports. However, modified rebuy does
occur when a new model of Honda is being launched as the engineers from Japan visit JCPL and
consult with them on how to make the new parts as they help program the new machines. After
they meet then JCPL sends the prototype to Honda Atlas in Japan where they will test the parts
before production begins and once approved the parts begin being produced. The most important
buying decision that Honda Atlas currently uses is they buy products continuously following a
pattern where there is a lot of experience and no new information is generally required since they
have been working together for many years. Honda Atlas also uses their lower level management
to identify the parts that are coming in from JCPL. In the case of New Task in the Buygrid all 8
of the buy phases would be utilized which are Problem Recognition, Characteristics of Product,

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Product Specification, Supplier Search, Analyzing Supplier Offers, Supplier Selection, Order Routine Selection, Post Purchase Review. While when talking about straight rebuy from Honda
Atlas point of view they would only incorporate the Post Purchase Review into their category.
For roles in the buying center there are initiators who are the people who regions the need or
problem which can be the users or ultimate user the consumer. Buyers who are the corporate
purchasers in the company for Honda as they carry out the purchasing. The user for
Honda would be the ultimate end user or the consumer. The influencers would be the technicians
who have expertise in that field for example a Honda mechanic who is good with clutch break
paddles and the assembly and quality assessment of them. The deciders are the higher ups in the
company in Honda Atlas such as the new tasks. Lastly, gatekeepers are those who filter the
information while the keep the buying center members in each department updated with their
meeting and information about purchases.
The delivery for JCPL occurs through a 3rd party if the transport mechanisms of JCPL are busy.
Quality checking and control is done by both the buyer and seller while any of the parts can be
exchanged by the buyer if the functionality fails the test however, this is very rare is they have a
6 sigma approach. Delivery and assurance has always been done on time with not a single
shipment done late. Reciprocity is dependent on the buyers and supplier as they set the terms of
the amount of money each part will cost and which specified date the delivery is to occur.

The Interpersonal Dynamics Of Industrial Buying Behavior

Purchasing influence on buying behavior
Efficient and effective purchasing is done through the use of an inventory control system. In our
company, (PPC) production, planning and control department decides how much and when to
buy stock. Because purchasing is now considered as asset management, inventory control is
essential to reduce costs and increase efficiency.
PPC takes orders before hand and then decides how much more stock the company need to
provide buyers the final product. Information is then transferred to other departments to start

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production. Benefits of this system are controlled inventory levels, better cost management,
timely deliveries and better operations.

Buying behavior
Centralized purchasing and JIT is done in the company, which is done by two to three purchasing
specialists who are also at the top of the management level. Purchasing is done in large orders
because of the nature of the company, buys steel sheets, hardware, steel pipes etc in bulk. The
company ensures to have long-term relationships with the suppliers to ensure reliability,
efficiency and also cost cutting.
Just in Time Purchasing
Just in Time is an inventory control system which enables a manufacturer to maintain minimum
inventory levels by relying on only one supplier to deliver
In recent times a new form of exchange has developed between suppers of the component parts
and materials and OEMs. Rather than using multiple sourcing, many OEMs are using Just-inTime (JIT). The objective of JIT is to develop long term one supplier relationship to reduce the
risk of interrupted material flows which could hamper production in OEMs. An advantage of
such a relationship is the resultant improved quality of the items supplied is that the resultant
improved quality of items supplied , referred to as Zero defect quality levels
Through its Vendor Quality Awareness Program, suppliers receive monthly reports on product
quality, and delivery performance. The use of JIT makes it necessary that the supplier deliver the
ordered product at the specified time and in the exact specified quality. For an effective JIT
system, it is also essential that there is integration pf the buyer-sellers materials management ,
engineering, purchasing, production and marketing systems to promote the efficient flow of parts
and materials. Under the JIT purchasing method, cost factors are less dominant and material
specifications are more flexible. Rather than a disregard for costs or quality, it creates an optimal
environment where the buyer/sell needs are fully catered.

24

Centralized purchasing:
There is a growing tendency towards centralization in purchasing. When purchasing is
centralized, purchasing specialists concentrate their attention on selected items, developing
extensive knowledge of suppliers
They are more familiar with cost factors that affect the supplying industry and understand well
how vendors within the industry operate. This specialized knowledge, combined with the volume
buying that centralized purchasing control, increases the firms buying strength and supplier
options. In comparison to local units where the emphasis is more on short-term cost efficiency
and profits, centralized units place more emphasis on long-term supply availability and building
supplier relationships. Moreover influencers outside the purchasing unit appear to have more
influence on purchasing decisions at the local level. Engineers and other technical personnel are
inclined to be overly specific about their preferences regarding materials, component parts, and
sources of supply. Less specialized, non-technical local purchasing agents often lack the
expertise and self-perceived status to challenge these preferences,
Centralized vs Decentralized System of buying behavior
Centralized purchasing refers to the purchase of materials by a single purchase department. This
department is headed and managed by a purchasing manager. Under centralized purchasing, all
purchases made by the purchase department to avoid duplication, overlapping and the nonuniform procurement. A company has to follow the centralized purchasing of materials for
ensuring proper materials control as well as efficient store keeping. Under this system, the
purchasing department purchases the required materials for all the departments and branches of
the company.
Advantages Of Centralized Purchasing
- Bulk quantity of materials can be purchased at a low price with favorable purchasing terms.
- The service of an efficient , specialized and experienced purchase executive can be obtained.
- Better layout of stores is possible in centralized stores.
- Economy in recording and systematic accounting of materials.
- Transportation costs can be reduced because bulk quantity of materials purchased.

25

- Centralized purchasing avoids reckless purchases.

- Centralized purchasing discourages duplication of efforts.
- Centralized purchasing helps to maintain uniformity in purchasing policies.
- Centralized purchasing helps to minimize the investment on inventory.
Disadvantages Of Centralized Purchasing
- High initial investment has to be made in purchasing.
- Delay in receiving materials from the centralized store by other departments.
- Centralized purchasing is not suitable, if branches are located at different geographical
locations.
- In case of an emergency, materials can not be purchased from local suppliers.
- Defective materials can not be replaced timely.

From the point of View of

1.Control

Centralized Purchase
On buying better control

2. Terms of Purchase

exercised.
Due to large scale order, better
terms

of

purchase

may

Decentralized Purchase
isEffective control may not be
present.
Less favourable terms may be
beavailable.

3. Departmental skill

available.
Economy in purchase can beSkill of the staff may not

4. Efficiency

obtained by better skill of the staff develop up to the mark.

Efficiency is obtained due toEfficiency cannot be expected
specialization

when purchase is made by

department heads who are

5. Standardization of
Materials

When

purchase

is

made

loaded with other work

byFrom
department

centralized purchasing department,department

,standards

to
of

all departments can get standardmaterials may vary

6. Regulation of purchase
Policy

materials
In case if centralization purchase,In
regulation

of

purchase

case

of

decentralized

policypurchase, change in purchase

26

&giving prompt effect to any

change is easy

policy cannot be easily given

7. Initial cost
8. Economy of staff,

effect to.
Initial cost is relatively high
Initial cost is relatively low.
Economy
of
staff,&More
staff
and
more

accommodation & finance

accommodation and also financeaccommodation

can be achieved by centralizedfinance
purchase because excess of storesrequired
need not be held
From central go

9. Transport cost

down

to
in

and

more

purchase

is

decentralized

purchase
toFrom central go down to

production centres, transport costproduction centres, transport

is considerable
cost is practically nil
Fragile items are subject to risk
There is no risk involved
Advantage of local market cannotAdvantages of local market

10. Risk in transport

11. Local purchase

be obtained
can be enjoyed
12. Promptness in supply of Prompt supply cannot be expected,Prompt
supply

without

materials for production

13.
Inter-departmental

even there may be bottlenecks

bottleneck is there
For favouritism, central supp mayChances of misunderstanding

Relation

sometimes be criticized and alsoare absent

misunderstanding

between

production centers and central

14.

Blocking

of

purchase department may be there

capital More working capital evenUnnecessary
sometimes

unnecessarily,

blocked

areworking

blocking

capital

may

avoided

Thus, (a) Centralized purchase is suitable where1. One or several plants are closely situated.
2. For production of standard products, one basic raw material is used by the plant/plants.
3. (b) Decentralized purchase is suitable where,
1. Several plants are distantly situated.
2. For production of different materials, plants use different raw materials.

of
be

27

The above cannot be the firm conclusion, because centralized purchase may benefit plants which
are distinctly situated but use very costly but light materials, the reason behind this is that,
negligible cost of transport is there & better control on material cost can be achieved.

JCPL as a B2B organization employs a Joint Decision Making system.

Joint Decision Making:
The Joint Decision Making is dependent on four different components.
I.
II.
III.
IV.

Characteristics of the firm

The type of purchasing situation
The perceived importance of the product (Risk involved)
The available resources for handling the purchase (Degree of centralisation)

Joint decision-making is done by three personnel who decide when and how much to buy.
Because of the nature of the item, most orders are general so there are very less chances of
conflicts between the participants of the joint decision making group i.e. ordering steel sheets. To
reduce risk, quality check department inspects the processes and items 8 times before it is finally
approved for delivery. The buying center interaction consists of vertical involvement.
Marketing implications
Insight in to the vertical involvement and how they are affected by both the purchasing situation
and organizational structure is quite useful for developing a proactive marketing strategy.
Because of general orders and purchasing in bulk items, marketers develop an efficient
marketing strategy to influence the buyers to buy from the company. We promise to provide them
with quality and also quantity.
Supplier choice and evaluation
Regardless of the diversity of the expectations and objectives, we seek to find the best source of
suppliers so supplier performance is rated through the categorical method which is based on the

28

experience and opinion of the user departments. Thus it is subjective rather than objective. A list
of significant performance factors is drawn up by purchasing and users merely assign a grade of
plus, minus or neutral to each factor. At regular meetings, the factors are discussed and then the
suppliers are notified. This is an inexpensive method to keep a track of supplier performance.

The Sheth Model

The Sheth model of industrial buyer behavior focuses on (i) Psychological aspects of individual
buyers (Component 1), (ii) Conditions causing joint decision making (Component 2), (iii)
Conflict

among

those

involved

in

decision

process

&

resolution

of

conflict

(Component 3).

1. Psychological aspects:
The backgrounds of the different personnel involved in the buying decision affect on the
overall buying decision. Their education life styles and most importantly their information
sources result in them favoring a certain supplier for various reasons. Dissatisfaction from
past purchases also affect the buying decisions.
2. Conditions causing joint decision making
These variables determine if buying decision is autonomous or joint. In this case decisions
are according to specific purchases which are mainly basic for example, steel sheets. Because
of this, most conditions result in joint decisions made by the top personnel.
3. Conflict among those involved in decision process and resolution of conflict
If conflict arises between top three personnel, the conflict is dealt with voting, problem
solving and also persuasion. When conflict is dealt with, the final order is made.

4. Situational factors

29

Situational factors include supplier or brand choice which also affect the final decision
making power.

Submission 1

Jodhala Complex PVT LTD

30

The B2B Industrial Marketing Process of Jodha Complex

( Submission 1)
Sana Swaleh Khan , Junaid Mirza, Fawad Ghafoor, Rameesha
Jehangir, Adnan Bashir, Ali Jafri

31

Jodhala Complex PVT LTD

Jodhala Complex PVT LTD is always on the forefront in the automotive industries, it is a firm
that is a part of JUS Group of Industries. Other firms include Sohail Engineering Corporation
and United mechanical Industries. The company was established by Mr. Mirza Muhammad Shafi
and is rapidly growing ever since. The innovative qualities and polices of the managerial body of
the company has proven to be the most efficient and to succeed in making its name in the
automotive industries and also possessing a major share in the automotive industry of Pakistan.
With the combination of modern and traditional manufacturing facilities and advance
technological process the company has a totally self-reliance concern with the ISO certification.
By adding the NC bending machines, Wire-Cut Machines, CNC machining Centre and heavy
hydraulic presses to the firms production department, it has become easy for the firm to produce
the critical parts and sheet metal components under one roof to OEM and other engineering
industries.
JCPL provides a long range of finished products especially instrument panel, pedal assembly for
clutch and brakes, accelerators, rickshaw front bodies, as well as complex welded assemblies to
major Pakistans OEMs. Which include Honda Atlas Cars, HinoPak, Metaline Engineering
Corporation, Siwa Industries PVT LTD, and Plum Qing Qi motors Ltd etc.
JCPL has a major portion of exports in the JUS group of industries tht are exported to Italy,
Spain, Saudi Arabia, Canada, USA, Republic of South Africa, Turkey, Bangladesh, Sri Lanka
and India.
Jodhala Complex indulges in 3 types of material buying. These include customer knockdown
parts, hardware and steel sheets. Hardware and steel sheets are imported from Thailand
Singapore and Japan. Raw materials are also bought from local markets from Moeen market
Karachi, Javed Metal Sheet Gujranwala and Landa Bazaar Lahore.

32

Parts from different sub venders also make a portion for the companies buying. Imports and
exports are done through credible banks on the basis of letter of credit.
The products of interest here for the project is the instrument panel and clutch/brake pedal
assembly for Honda Atlas Cars. JCPL is a proud monopoly in this aspect as no other firm makes
or supplies goods of such quality as JCPL.
Transpiration of goods is done by JCPL and occasionally third parties are hired like the Milk Run
transport in Gujranwala.
JCPL is situated on the GT. Road which provides a strategic advantage for the company because
the buyer firm is within hours reach from them.
JCPL has its own website and is present at the top most Google searches for parts that the firm
makes. Details about the whole group can be found on www.cecopak.com.pk.
Product designs are set by the headquarters of Honda in Japan through CAD/CAM assemblies
and all instructions to the suppliers is given by them.
Product planning is essential to JCPL. Constant surveys both verbal and written are sent to the
buyer firm. Parts are gone through rigorous quality check before every delivery of shipment.
Honda Atlas gives out monthly reports on the suppliers performance with respect to quality,
supply and test report. After 6 months the buyer firm would pick any part and conduct a detailed
research and tests for durability and quality.New model cars require new parts that are sent to
japan known as the pilot lot. The pilot lot when approved is signed for production.
The firm is at a maximum advantage according to the concept of 4ps. Price is fixed between the
buyer and the seller firm. Promotional advantage comes in the shape of the website and the firms
CEO being the member of Pakistan Association of Automotive Parts and Accessories
Manufacturers. Placement advantage the firm has is that is situated on the GT road in the
industrial region of Gujranwala where advantage of ease of transport is available. Finally each
and every product of this firm is certified by the Pak Engineering Devilment Board.
The Economies of Demand:

33

Jodhala Complex PVT LTDs production and sales are affected directly by the number of
vehicles that are ordered by its subsequent B2B Buyers as JCPL provides a long range of
finished products especially instrument panel, pedal assembly for clutch and brakes, accelerators,
rickshaw front bodies, as well as complex welded assemblies to major Pakistans OEMs. Which
include Honda Atlas Cars, HinoPak, Metaline Engineering Corporation, Siwa Industries PVT
LTD, and Plum Qing Qi motors Ltd etc. As a result its sales are directly proportional to the
customers demand for the OEM final products in Pakistan. If demand increases (B2C level), the
demand for Jodhala Complexs production/sales increases and vice versa. More over it is a form
of derived demand as demand from B2C markets lead to the need for Jodha Complexs
products that form components of the OEMs final goods that are sold to the customer.
Moreover, Joint demand is also present in this type of B2B transaction as a variety of
components are required by OEMs to produce a car and sell it in the B2C market (To consumers)
, most of which are procured in bulk from the above company.