All praises for Allah who is the so Merciful, Beneficent to His creation and who is the master of Judgment

day.
Without His consent, nothing is possible.
We offer our humblest thanks from the cores of our hearts to the Holy Prophet Hazrat Muhammad (PBUH)
who is forever a model of guidance and knowledge for mankind.
Now we wish to express our special thanks to our worthy teacher Sir Mr. Malik Asim Awan for his Cooperation,
Valuable guidance and supervision under which this project has been completed.
We are also thankful to Sonica Industry. For their help, association, encouragement and best wishes, this enables
us to complete this project of Marketing Management of Sonica Industry.
All we specially acknowledge all those persons who helped and support us in regard to provide information for
this project report (directly or indirectly).
Rana Waqas 09108136
Yousaf Abbas 09108123

Rana Ammar 09108124

Usman ilyas 09108127

Executive Summary
Marketing is very important in an Organization. Organizations have been using their departments in carrying out
the product and create value in the mind of customer and make success full product and enhance the sale. In order
to address the challenges of Modern Business era, the organizations use all their departments as a tool.

This report is based on project of Sonica Industry which has factory in Gujranwala near pindy bypass. There are
four main industries under the head of Sonica industries

1. Sonica Auto industry.

2. Sonica Plastic furniture industry.
3. Sonica injection molding industry.
4. Sonica Copper wire industry.

The project is also an effort to investigate and evaluate the Marketing Management Process in all the
Departments of Sonica Industry. We have given the Project of Marketing Management. We have selected the
Sonica Products for our Project. In Sonica industry we are selected two products one is motor bike (70cc) and
second is Plastic Furniture. Sonica was established in 1978.

We apply different Marketing Functions and theories of analysis in our project (SWOT, PEST, Situation, 4Ps and
etc). In the very end of this report we have some significant suggestions and recommendations for further
improvement, development, rectification, precedence and excellence of the Sonica. Report area include glossary.

Situational Analysis

Sonica Group of Industries

Sonica Plastic industries started its business in 1978 by manufacturing spare parts of Plastic washing machines on
a small scale under the supervision of Muhammad Munawar. But continuously and gradually this small unit
started manufacturing of Plastic Furniture on a large scale in 2009.Sonica Plastic Industries has its own automatic
machinery. This is all achieved by sharing committed management and experienced employees. Sonica Plastic
Industries is now become a prominent name in Plastic Furniture industry in Pakistan. Sonica Plastic Industries
satisfying hundred of million customers all over Pakistan and abroad too.
Sonica Auto Industries started business in 2001 by manufacturing spare parts of MOTOR CYCLE on a small
scale under the supervision of Muhammad Waqar. But continuously and gradually this small unit started
manufacturing of MOTOR CYCLE on a large scale in 2006.

Sonica Auto Industries has its own automatic paint shop, assembling department etc. This is all achieved by
sharing committed management and experienced employees
Sonica Auto Industries is now become a prominent name in Auto industry of Pakistan. Sonica Auto Industry
satisfying hundred of million customers all over Pakistan. Today, as we are witnessing a new era of industrial,
economic and commercial advancement, we have developed all our efforts for the betterment and achievement of
the new positive prospect of long term development.
While Sonica industry also manufacturer of Cooper wire but due to high increase in the price of cooper raw
material this plant is stopped last 1 year

Vision Statement
To improve on contemporary measures such as, cost, quality, service, speed of delivery and mobilization.

Customer satisfaction with high Quality

Create Trust in all customers

To Be
... A market leader by providing quality products and superior service to our customers, while learning from their
feedback to set even higher standards for our products.

Mission Statements
A sign of Quality & Durability

PEST ANALYSIS

Political Factors

Inconsistent policies of the government adversely affect the business environment of the country.

The government seems to complete its tenure of five years for the first time so it is a good sign.

Frequent increase in oil prices disturbs the cost and selling price of the raw materials and products
respectively.

The government plays very little role in building up the health, education, and infrastructure of our nation.
As a result the human resource is not as skilled as ideally it ought to be.

Economic Factors

Due to recession the economic growth of the industries in which Sonica operates is almost stagnant.

Interest rates are high. Although the group has a solid equity based equity but it has borrowed a loan of
30 million for the plastic unit. The financial cost of the loan is quite high and in future further borrowings
would be difficult to attain, although secured borrowings can be attained as the group has a heavy asset
base.

Inflation rate is above 20%. If prices are not increased by more than 20% in a year, inflation cannot be
covered. The increase results in loss of sales.

Social Factors

Labor is not health conscious in this region so it is available at low wages.

They are willing to do overtime in order to earn more money as they are living in poor conditions.

Technological Factors

Technology is becoming advance day by day and it is very difficult to cope with such rapid advancement.
It is not cost efficient as well make frequent changes in technology. Normally, technology is upgraded
after a period of 3-5 years.

Technology can bring efficiency, improve quality and reduce effort. Efficiency can reduce cost and quality
can increase sales and establish a brand name. Less number of people may be required thus further
reducing cost. But it requires huge amount of investment initially and people will take time accepting new
technology and getting used to it. Some may show resistance.

With the help of advanced technology Sonica can achieve competitive advantage and dictate terms in the
market.

In Plastic Furniture Unit the management is not compromising by investing in the research and
development. This is why they have a wide range of products. Some of them are not even offered by
competitors who are very old in the industry.

Special expertise may be required to bring the technological change in the group as they do not have any IT
department in any unit

Marketing analysis

HOW LARGE IS THE MARKET FOR THE PRODUCT IN QUESTION?

In country like Pakistan it is difficult for the peoples to maintain the cost incurred on the bikes petrol. After every
day the price of fuel in Pakistan is increased so it is the need to make a bike which is fuel efficient and will be on
very low cost and will be easily accessible for the poor people as well. So we introduced a bike which will be 50cc
and its price will be very low and will be up to Rs.30, 000. The peoples who are cost conscious and does not afford
the fuel charges will bought our bike and in Pakistan most peoples are poor and middle class so they will bought

our bike rather than other bike and market for our bike will be very high. And our target market will be middle class
peoples and office going peoples.

SONICA AND OUR PRODUCT MARKET SHARE

As we knew the market share for Sonica are only 5% as compared to other bike producing companies which is very
low. Therefore we introduced some thing innovative which other companies does not provide, due to this
innovation the market share of our company will increase as compared to other companies and our company will
got a status in bike market as well.

FACTORS INFLUENCING

THE DEMAND OF OUR PRODUCT

These are factors that influence the demand of our product;

Low income
The income of Pakistani peoples is not too high and they dont afford the high price bikes therefore in such
conditions when we will introduced low price bikes peoples will attract toward our bikes.
Increasing prices of fuel
In country like Pakistan where inflation rate is very high prices of every thing is gone up and up and the
price of fuel is also becomes high after every day therefore our 50cc bike will create his demand at his own
and people will prefer our bikes to purchase.
Innovative design and technology
In our bike such a type of engine is held which is most economical engine of Pakistan history that engine
give us minimum 150miles per liter. And such a type of engine will make his demand on his own.

MARKET SEGMENTATION

We introduced the bike for those middle class peoples who does not afford bike due to high prices and also the high
expense of fuel and also for those office going peoples who had very low incomes and does not afford the high
price of fare or fuel so our target market will be middle class peoples and low income employees.

OUR PRODUCT

AND

PLC

Because Sonica is going to introduced innovative thing in the market therefore our product will be on the very early
stage of the product life cycle which is introduction. But with more promotion and advertisements company can
make the loyalty in minds of the customers due to which peoples will buy our product and our product will reach on
growth stage of PLC.

With more promotions company will form the good will in the mind of the customers due to which the demand for
our product will be increased with the passage of time.

Competitors Analysis

WHO ARE THE COMPETITORS?

Mainly these will be our competitors;

Honda
Yamaha
Suzuki

THEIR STRENGTH

AND WEAKNESSES

Their strength is that they have very high market shares and loyalty in the mind of the customers and they
gave very high quality products therefore peoples will think a lot to come to our product.
Their weakness is that they produced very high price bikes which are not affordable for the middle class
peoples like Pakistan.

BASICS OF COMPETITION

Our Basics of competition will be price and most economical engine of our bike. Those things will
provide us some sort of competition with our competitors.

HISTORY OF COMPETITIORS

Honda is in Pakistan from 1975 till now they are very famous in motor bikes in Pakistan because they
maintain their standard of quality from start to till now.

CURRENT MARKET SHARE

OF COMPETITIORS

Honda has 71.16% market share in the market of motor cycle while Yamaha`s market share are 14.41% and
Suzuki market share are 2.54% while other companies like toyo, habib and Ravi had total 12% market shares
for bikes industry in Pakistan.

Porter Five force model

Our product is according to the bargaining power of Pakistani customers while Honda`s products are out
of range from customers that is the edge our company had over others.
Because our product will be attractive it will be a threat that Honda or Yamaha also introduced the same
product.

An Analysis of

organizations strengths, weaknesses, opportunities and threats. Strengths and Weaknesses are internal factors of
an organization, whereas Opportunities and threats are external factors of an organization.

The combined internal and external analysis of an organization called SWOT ANALYSIS of the organization.
Strengths

They manufacturing high quality products

They have a quality control Department check their product at every step
They have 5% market share in 7 years
They have high qualified managers which are the success key for company.
Latest technology
They are ready to launch Sonica cc 100

Due to offering credit policy the number of customers Sonica Plastic Industries has is high.

Since 1978 they have developed goodwill and customer loyalty. This is they do not lose any of their
customers. They develop long lasting relations with the customers by giving them credit in tough times as
well.

They have high figures of sales. Even in times of recession they have a gross turnover in 2010 of 475
million.

The group has a very strong base of investment. The majority of the investment is equity based.

Weaknesses

New employees are unskilled.

No proper training provided to their employees.

Current employees are mostly uneducated.

High labor cost

Tax rate increase in Pakistan
New product takes time for gain market share
None of the units in the group has developed Best Practices Manual or Standard Operating Procedures.
This results in the execution of operations in a non-standard way. The culture of the organization is also
affected by the ways organization is being run. People do not know what to do when a problem comes up
and ultimately it has to be solved by the higher management instead of following best practices in the
organization.

Trusting new customers on the recommendation of existing customers and giving them credit is another
weakness. Sometimes the new customers do not pay for the goods delivered to them.

Opportunity

By offering credit to customers they charge more in order to gain higher margins.

Due to uncertain and difficult conditions in the country sometimes competitors are because of such
conditions. These are the times when one can capture the disturbed market. This results in brand
recognition, high sales and high profits.

New model of motor bike SM 125cc going to be launched which have demand in the market. Providing
such items is a good opportunity to earn money.

Threats

There is always a risk of bad debts when credit is offered. Sonica Group of Industries also faces this risk.

The environment of the country nowadays is very uncertain. Making plans on the basis of estimation has
become very difficult.

Frequent increase in the price of petrol result in increase in the prices of all the raw materials. Due to this
selling price has to be increased and customers are lost.

High interest rate is paid by the organization on debts taken from banks.

Mostly raw material is made in Pakistan. Because of Electricity short fall production are not in proper. In
case of some political instability, results can be very drastic.

They are enjoying the whole market as their clients as there is no any perfect competitor, so they have a
large threat of competitor.

Such high rate of inflation has destroyed the economy. Nobody is willing to invest and so customer
buying behaviors have changed and so they negatively affect the sales.

Cost of production increase day by day because tax rate increase petrol and electricity prices increase also
our country face the problem of inflation and recession so cost increase.

Analyze buyer
behavior
WHO INITIATE THE BUYING PROCESS?

Our marketers will initiate the buying process they will show that our product will fulfill the current need
of more millage with less price then customers knew that they want such a product which will give us
such a attributes that will fulfill our need then they will think about purchase.

FACTORS STIMULATES THE NEED

The poor economic condition and every day increase of inflation in Pakistan will stimulate the buyer that
they purchase such an inexpensive bike.

CRITERIA

TO EVALUATE THE ALTERNATIVES

These might be the criteria to evaluate the Alternatives;

Price
Mileage
Quality and durability
Economic trends
Availability
After sale services
Warranty
The most important criteria will be Price, Quality and mileage of the product because mostly peoples are

price and quality conscious.

Those who will found that our product is serving more than the competitors product will decide to our

product.
Those peoples in whose mind our marketers become successful to create good will or loyalty will finally

purchase our product.

After purchase peoples will use our product then they evaluate the attributes of our product with other one
if their evaluation about our product will be good then they will purchase our product again or suggest
others to purchase our product but if our product does not fulfill the needs or their thinking criteria they
will leave our product and will move toward the other company.

GOALS OF OUR
COMPANY

By introducing new 50cc technology in Pakistan Our Goal is to reach more than forty percent of total sale
of bikes in Pakistan and got more than forty percent share in motor-bike market and our product will be
available in every city and every village of Pakistan

Review of Market segmentation

CURRENT STRATEGY

Our current strategy of market segmentation is demographic segmentation in which we encounter income
part because of the current economic situations of Pakistan.
Our competitors cater behavioral segment and use differentiation strategy for those peoples who
concentrate on quality rather than price.
Because we made product on the basis of less price and high quality regarding mileage therefore our
focus strategy is most prominent because we us demographic segmentation.
Yes we can serve our product to those old age mens who use bikes like vespa and feel comfortable on
their because the speed of that bike is not too much and they use it very comfortably there fore when they
saw our bike which is fuel efficient and less price they will come toward our bike.

Review of
differentiation and
positioning strategy

DIFFERENTIATION STRATEGY

Our product is different from the competitor product because of its low cost and its attribute of high
mileage. Our competitor like Honda and Yamaha use the differentiation strategy by making high quality
products which are long term useable. If our customers have high brand loyalty for Sonica then them our
new innovative product will also be favorable for customers. But if customers do not have high loyalty
then our new product features will attract customers toward our product. While our competitors Honda
and Yamaha already have very high brand loyalty in the minds of the customers because they gave
continuously same quality products. There will be a need to change the differentiation strategy when
customers go toward Honda rather than our innovative product then we introduced a 200cc bike for young
generation that is our back up plan.

Product
strategy
PRODUCT

STRATEGY

Yes, our product features of low price, high mileage and high quality bike is suitable for our
differentiation strategy positioning strategy. Because if it becomes successful it will create good image in
the minds of the customers.
Our competitors like Honda, Yamaha and Suzuki gave high quality products on high prices they gave no
any extra features as compared to their prices As well they are not giving stylish bikes to market and they
are maintain their old design of bikes but they change only their mono on every year new model thats the
only difference that they create in new products.
Yes, every company should introduced new features into their products because peoples wants new
features every day and if company provide that features then peoples becomes loyal with them.
Yes the introduction of new traits in the new market is profitable because on that place peoples does not
knew about their product and want to knew about that by using it and if they feel good they will surely
told to older segment peoples and company will encounter more customers. As I already told peoples need
new look or attributes in the product if they get then they will become loyal as well when company
change packaging then capture more customers intention.
Our launch plan will be different from our competitors because our competitors first introduced new
product into the market then market them but we firstly market our product and then provide to the
customers. In the start we will place low price and then increase by looking demand of our product.
We can improve the quality of our product by giving after sale services for long time and giving long term
warranties.