Walton aims to become the market leader in air conditioners in Bangladesh within 5 years. It will target both higher income customers and middle/lower middle income customers. For higher income customers, Walton will position itself as offering sophisticated, environmentally-friendly air conditioners with innovative technologies at prices from 90,000-120,000 Taka. For middle/lower income customers, Walton will position itself as offering economical, energy efficient air conditioners with basic features at prices from 45,000-50,000 Taka. Walton will distribute through its own outlets, dealers, agents and local electronics suppliers, as well as e-commerce, to reach both target markets.

1. Welcome to our presentation
Group no 02

2. Marketing plan for
Walton
Air Conditioner

3. Walton Hi-Tech Industries Ltd. is the one and only
manufacturer of multi-staged
Refrigerator, Freezer, Air Conditioner, Television and
Motorcycle and is treated as one of the sophisticated
manufacturing plant in Bangladesh and South Asia.
Now Walton is going to emerge as an AC producer.

4. Marketing objective
Be a market leader in Air conditioner market
in Bangladesh within Five years.
To build profitable customer relationship by
producing environmentally better AC
and getting them to market faster at lower cost.

5. Financial objective
To achieve break even at the first year
To achieve 25% sales growth in subsequent
years and to achieve at least 30% mark up
Capture 50% of local market share and
contribute billion taka profit in company
balance sheet from this business unit

6. Market analysis
Intensity of
rivalry
Bargaining
power of
suppliers
Bargaining
power of
buyers
Threat of
entry
Threat of
substitute

7. Bargaining
power of
suppliers
●No backward linkage is
developed locally
● Raw materials are mostly
imported
●Depended on foreign
technological support
Low influence over Suppliers

8. Bargaining
power of
Buyers
Distributed through
• Own outlet
•Dealers and agents
• Local electronics retailers’
showroom
Final customers have lots of
option as reputed brands are
offering high tech products
Medium influence over
buyers

9. Threat
of entry
•Need high technological
support and expertise to set
industry
•High capital requirement and
fixed cost
•High sunk cost
Low threat of new entry in this
industry from local market

10. Threat
of
substitute
Substitute product of AC may be
cooling fan , ventilator fan but
those can not serve as required.
So no close substitution for AC is
available
Very low threat of substitute
product

11. Intensity
among
competitors
•Market is very much saturated
with renowned brands
•World class brands are
competing with cutting edge
technology
•Rapid innovation and
diversification by competitors
Competition is very acute in
market

12. Strength Weakness
Opportunity Threat
Internal
External

13. Strength Weakness
Opportun
ity Threat
•Low price
•variety of features
•After sales service
•Brand awareness

14. Strengt
h
Weakness
Opportunity
Threat
•Dependency on
Imported raw materials
•Inadequate Research
and development
•Low differentiation

15. Strength
Weakness
Opportunity
Threat
•Increasing demand
•Cost-efficient technology
•Government support

16. Stre
ngth
Weak
ness
Oppor
unity
Threat
•Tight competition
•Customers’ perception
•Continuous change in
technology

17. Geographical
Income and
occupation
•Metropolitan city
•Medium and zilla
towns
• suburbs & small
towns.
• villages
•High income corporate
customers
•Middle income and SME
•Lower middle income
•Lower income
Market segments

18. Target market
Higher
class
customers
Economic class
customers
Customers having higher income
mostly corporate and business
customers and household customers
living in metropolitan cities having
income of above 50,000 tk.
• market size: about 65-%70% users are
located in this segments
• Market growth: market is growing
about 40%-50% each year
•Attractiveness: this customers are
willing to pay premium price for
environmental friendly and innovative
product more over it’s market growth is
moderate . Those data make the
Segmented marketing

19. Higher class
customers
Economic
class
customers
House hold customers having middle
income, living in zilla towns, suburb or
small town and villages: small and
medium enterprises
•Market size: comprises 30%-40%of
market share
•Growth rate: 80%-120% growth rate.
•Attractiveness: this customers’ income is
growing and they are demanding AC
more and more. So this customers can be
reached by already established brand and
distribution channel . Those situations
makes this segment Lucrative.
Target market
Concentrated or
niche marketing

20. Positioning strategy
Sophisticated AC
Offering an environment
friendly AC with sophisticated
tech innovation like
•Eco- navigation and HD filter
• good sleep and anti bacteria
coating tech.
• turbo cooling and anti-
humidification tech.
Economic AC
Offering a low cost, energy
efficient user friendly AC
with
• durability and reliability
•Low watt
•Triple weather protected
tech
• comfort air flow and
efficient tech.
More For The Same Same For The Less

21. Pricing strategy
Sophisticated AC
Adopting More For The
Same strategy
Price range may be 90,000 to
120,000 tk.
Economic AC
Adopting Same For The
Less strategy
Price range may be 45,000
to 50,000 tk.

22. Distribution channel
Own outlet
Dealer and
agents
Local electronics
suppliers
E- commerce

23. ACs market
Higher class
corporate class
Middle income
SME
Lower middle income
Low income
Target
market
•Higher income
and economic
class
•Middle and
lower middle
income
Objective
Be Market
leader in
ACs market
Price
Product
Promotion
Place

24. Advertisement
• Commercial advertisement video