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MARKETING

MANAGEME
NT
FIXED VENDOR &
MOBILE VENDOR
SHABBIR-MOBILE
VENDOR Submitted to: Ms. Ayesha
Sadullah

KHAWAJA
TRADERS

GROUP MEMBERS:

SALMAN SHAH

DANNIYAL JAFRI
EXECUTIVE SUMMARY
Shabbir (50) a leather product mobile hawker operates 7 days a week from 11 am to 11 pm at Zainab
market Saddar. His target markets are those people who belong to SEC-C. The mobile vendor has
positioned itself as value for money and the prices the mobile vendor quotes are between Rs.150 to
200.The only kind of promotion done by him is offering discounts to his loyal customers .Eid is the
season Shabbir looks forward to when he does roaring business. On any regular day Shabbir plans to
achieve a sales target of 5 to 15 sales everyday keeping an approximate of 30% margin over the products
he sells and calculates the profits made every 15th day. Shabbir predicts pressures on price from
competitive activities happening in the locality due to labor migration Other than that he also saves
sufficient capital to help him manage adequate levels of inventory. Shabbir buys his stock every 15 days.
Shabbir’s priority is to have a permanent outlet or a stall though he believes that government is not able
to assist him in any manner.

Shabbir says that RGST will not have much impact on the market as the suppliers will not increase their
prices as it will affect their sales.

Khawaja Javed Hakak a shop owner of leather products. He owns the shop and the manufacturing unit
from where he obtains his daily supplies. His business mainly deals with the corporate giants, as well as
fulfilling local and international orders. The shop is for higher credibility plus a carrying out his retail
sales. Khawaja Javed started his business in 1986 with a small retail shop and then from continuous
improvement and development he is able to make his own manufacturing unit in the area of Korangi
Industrial Area where his products are made.

Khawaja Javed says that the inconsistent government policies with respect to domestic exports are
creating much more hurdle in there way reaching international markets and potential investors are not
coming into the country due to tense law and order situation and this law and order situation disturbs the
economic activity affecting all manufacturers at large due to strikes, market closing etc. Further more
when government is fails to provide continuous power which in turn leads to production delays due to
this creates bad name about the manufacturer causing to loose potential orders in future.

This report entails the activities, marketing objectives, SWOT Analysis of a street hawker as well as a
shop owner in a particular field. It covers all aspects of their business from pricing till promotion.

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TABLE OF CONTENTS
MOBILE VENDOR-SHABBIR………...……………………………………..4
Market Segmentation…………………………………………………........4
Marketing Objectives cum Strategies ………….……………….…...........5
Financials……………………………………………………………….….....5
Contingency Plans…………………………………………………….…......6
Future Plans…………………………………………………………….…....6
SWOT Analysis…………………………………………………………........6
Pictures-(mobile vendor)………………………………………...……..........7
FIXED VENDOR-KHAWAJA TRADERS...…….…………………………...8
Market Segmentation……………………….………………………….........8
Marketing Objectives cum Strategies…….…….……………………..........9
Financials……………..…………………………………………………….....9
Contingency Plans……………………………………………………….......10
SWOT Analysis…………………………………………………………........10
Pictures-(fixed vendor)…………………………………………………........11

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SHABBIR LEATHER PRODUCT-MOBILE VENDOR
Shabbir (50), a leather product mobile hawker operates 7 days a week from 11 am to 11 pm at Zainab
market Saddar. His target markets are those people who belong to SEC-C. The mobile vendor has
positioned itself as value for money
and the prices the mobile vendor
quotes are between Rs.150 to 200.The
only kind of promotion done by him is
offering discounts to his loyal
customers .Eid is the season Shabbir
looks forward to when he does roaring
business. On any regular day Shabbir
plans to achieve a sales target of 5 to
15 sales everyday keeping an
approximate of 30% margin over the
products he sells and calculates the
profits made every 15th day. Shabbir
predicts pressures on price from
competitive activities happening in
the locality due to labor migration Other than that he also saves sufficient capital to help him manage
adequate levels of inventory. Shabbir buys his stock every 15 days. Shabbir’s priority is to have a
permanent outlet or a stall though he believes that government is not able to assist him in any manner.
Shabbir says that RGST will not have much impact on the market as the suppliers will not increase their
prices as it will affect their sales.

TARGET MARKET: target market consists of male shoppers mainly due the variety of male
products as well as female (sometimes) for the gloves.

GEOGRAPHIC SEGMENTATION: Shabbir moves around the main road at Zainab market Saddar
where people who live in that area or are familiar with the area know him. He only caters to the people in
that area.
DEMOGRAPHIC SEGMENTATION: He targets those who don’t go for branded stuff or are reluctant
to shop from branded outlets and showrooms. They are his target audience. SEC-C is what he targets.
Being a mobile vendor and giving products on a very low price. Shabbir’s target markets are those people
who belong to SEC-C. As said by him, majority of the sales made are to men or to females who are
mostly buying stuff for the male members of their family.
POSITIONING: The mobile vendor has positioned itself as value for money, as the prices are very low
and even the product that he offers lasts for quite a long period. Such positioning is kept because SEC-C
is the target market who are the once as he says want durability in minimal price.

MARKETING OBJECTIVES CUM STRATEGIES


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PRODUCT: The product being offered to the customers of the mobile vendor are leather wallets, gloves,
key holder, small purses and bags, visiting card holders, which is mostly targeting male members of
SEC-C as Shabbir said. The product being offered by Shabbir is of the quality as the price paid by the
customers. The products are brought from leather market at Zainab market where there are two qualities
either Chinese or Pakistani, Shabbir buys both and catering to SEC-C. Chinese ones are cheaper than
Pakistani products.
PRICE: The prices the mobile vendor quotes are between Rs.150 to 200. As he targets the lower income
group, these prices are competitive in the market through which he attracts customers. His loyal
customers are offered a discounted price which motivates them to re-purchase the product from him in
the future.

Product Price Quoted to Cost (Rs) Minimum profit


customers (Rs) margin to be kept after
bargaining

Wallet 120 60 30%

Diary 250 130 30%

Handbag 200 150 30%

Gloves 200 150 30%

Keychain 100 40 30%

Cardholder 90 50 30%

PLACE: Shabbir the mobile vendor has even located himself in a busy area of i.e Zainab market. The
stock which he has on his stall comes from the wholesalers in the leather market at Zainab market even
though he’s buying from that place from past 25 years he gets no credit for purchases and the reason he
mentions for that is the lack of trust attitude for each other inculcated among the people over time.
PROMOTION: The only kind of promotion done by him is offering discounts to his loyal customers so
that they come back and re-purchase the products from him. Because as Shabbir says Allah is the one
who provides rizq to people and he has complete faith in Allah for the success of his business if he runs it
with honesty.
FINANCIALS: Eid is the season Shabbir looks forward to when he does roaring business. On any
regular day Shabbir plans to achieve a sales target of 5 to 15 sales everyday. Total sales revenue for
Shabbir in a day is projected to be approximately Rs. 2000 as per the estimates provided by him. That
makes a profit of at least Rs600 a day if the profit margin is kept at least 30%. Though Shabbir did not
accept it but on investigating from his colleagues we came to know that the mobile vendors have to pay
some amount to the law enforcement agencies on a daily basis.

He keeps a record not on every transaction but on the profits he made from the sales. He keeps an
approximate of 30% margin over the product he sells and calculates the profits made every 15th day.
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CONTINGENCY PLAN, CONTROLS AND COMPETITION: Shabbir predicts pressures on price
from competitive activities happening in the locality due to labor migration. It is expected that this would
not only have an impact on profitability but on break even sales volume as well. He tries to make
efficient use of his resources in order to avoid this. Other than that he also saves sufficient capital to help
him manage adequate levels of inventory. Shabbir buys his stock every 15 days.

FUTURE PLANS: Shabbir’s priority is to have a permanent outlet or a stall though he believes that
government is not able to assist him in any manner. The reason why he wants to be affixed to ceratin
place is due to customer footfall in that particular area as well as people coming back and finding him.

POSSIBLE IMPACT OF RGST ON BUSINESS: Shabbir says that RGST will not have much impact
on the market as the suppliers won’t get themselves registered with the tax body (tax evasion) and hence
will not increase their prices as it will affect their sales.

SWOT Analysis (as per Shabbir)

Strength Weakness

1. Hardworking 1. Mobile-not a permanent place which


means that not much sales as people tend
2. Consistent in running the business to buy from those who have a permanent
3. Faith in Allah place so at people could come back if the
product develops any fault

2. Quality which even its good is


considered to be inferior because the
vendor is mobile

Opportunity Threat

1. Expansion possible only if the 1. Seasonal migrations by individuals


government support in form of easy loans belonging to upcountry who come to
or grants Karachi and setup their businesses hence
increasing competition

2. Extortion money paid on daily basis to


law enforcement agencies

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KHAWAJA TRADERS-SHOP OWNER
INTRODUCTION: Khawaja Javed Hakak, 35 who is a father of 3 lives in Gulistan-e-Jauhar. He leaves
for his shop which is located in
Sadder Zainab Plaza. He owns the
shop and the manufacturing unit
from where he obtains his daily
supplies. His business mainly deals
with the corporate giants, as well as
fulfilling local and international
orders. The shop is for higher
credibility plus a carrying out his
retail sales. Khawaja Javed started
his business in 1986 with a small
retail shop and then from
continuous improvement and
development he is able to make his
own manufacturing unit in the area
of Korangi Industrial Area where
his products are made. The
inspiration as an entrepreneur he got from his father who had a business of Fur products. Khawaja Javed
explained that from inception till the year 2005 he was in continuous phase of expanding his business and
grabbing every opportunity to make it more big, but the recession in 2007 has shattered his dreams and
he’s facing a continuous decline in the sales. But as an entrepreneur Khawaja Javed is determined to
grow his business despite the fact that recession is gone but after shocks are due.

TARGET MARKET: They are 2nd generation manufacturers and retailers because people seek out for
them rather then looking out for business. Their end purchaser is customer not a consumer (Mostly).
They mainly target large corporate as well as small consumers including male and females because have
a complete variety.

GEOGRAPHIC SEGMENTATION: the geographic segmentation which is depicted by the


information that corporate giants mainly from Karachi, Lahore and Islamabad as well as international
leather products buyer who find excellent products on a cheap rate due to availability of cheap labor.

DEMOGRAPHICS: The class which Khawaja traders focus on Giant Corporate (SEC-A) and in
retailing part they target SEC-A and SEC-B+ and SEC-B- and SEC C.

POSITIONING: Product positioning by Khawaja traders is mainly an Excellent Quality product with
the minimum prices. They are not in competition with Branded Retailers like Jafarjees Leather and
HUB Leather because they have exactly same products available, but the only difference is that they
aren’t charging for the royalty of their brand name, which is being done by Branded retailers.
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MARKETING OBJECTIVES CUM STRATEGIES
PRODUCT: The product offering is wide at Khawaja Traders which includes assortments of Belts,
Bags, Pouch, Wallets, Diary covers, briefcases, giveaways, Card holders, key chains, Diaries, Folders
and gloves. These products are manufactured at their own units. And are targeted to SEC-A and SEC-B
(+,-) and SEC-C.

PRICE: The price offering is attractive, competitive and is at par with other leather accessories shops in
the market. There is no bargaining, only fixed prices with a profit of 10%-20% on corporate orders, and
the price per unit charged to those orders varies with quantity ordered. For retail selling the profit margin
is 25%-35% depending on the quality of product as well as uniqueness. The pricing strategy adopted by
Khawaja Traders is Cost plus pricing.

Product Price Range(RS) Price offered to Price offered to


retail customers + Corporate &
Profit Margin International +
Profit Margin

Wallet 60-1200 Cost + 35% Cost + 12%

Diary 100-1500 Cost + 30% Cost + 20%

Handbag 300-5000 Cost + 35% Cost + 15%

Gloves 100-1500 Cost + 35% Cost + 10%

Keychain 20 – 600 Cost + 25% Cost + 20%

Cardholder 40-600 Cost + 25% Cost + 20%

PROMOTION: There is no promotional activity carried out by Khawaja Traders. The only thing which
they maintain and seek out for is customer relationship building through referrals and word of mouth due
to which they are able to get large orders from their customers. The other types of promotions which he
offers is only restricted to corporate orders which are in bulk quantity, as well as to attract them again.

PLACE: Khawaja traders have a shop in Zainab Market section of leather goods. From their all the
supplies to the corporate orders were made thru Mr. Javed’s personal car.

FINANCIALS: Khawaja Javed calculates the sales at the end of the month because the sales pattern is
continuously fluctuating someday he might have a sale of 100,000Rs and some day he might have a zero
sale. He has a shop in an area where there is no collection of extortion money, due to which he saves a
substantial amount. On corporate clients the (%) of profit charged is around 15%-25% depending on the
quantity of order, and on retail selling he charge 25%-35% depending on the customer as well as product.

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CONTINGENCY: As corporate and international orders are time bound therefore a strong backup plan
is required in case of any violent law and order situation, he makes sure that all workers should reach the
workplace and if not he pickup them all in his van and take them to the manufacturing unit in order to
meet up the deadline.

SWOT Analysis (as per Khawaja Javed)


Strength Weakness

1. Brick and Mortar Retail outlet + 1. Lack of skilled labor. No development


manufacturing Unit or improvement

2. Strong Relationships – Corporate Vendor 2. Pressure is not handled effectively,


unable to meet deadlines.
3. Complete Business understanding. Could
entice customer to buy the product.

4. Vicinity free from extortionists collecting


extortion money. (Bhatta)

Opportunity Threat

1. Outsourcing supplies from china. 1. Economic and political instability.


Investor refrains from placing order due to
2. Start marketing through wide the prevailing law order situation in fear of
availability of social networking in unable to meet deadlines.
international markets about product
offering. 2. Distrust of Pakistani image in
international market, potential as well as
existing investor withdraws their
investment. Distrust caused mainly due to
war on terror.

3. Improper infrastructure. Unable to meet


their deadlines due to continuous power
and gas failure.

4. Continuous red tapeism by government


in provision of export facilities.

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