a ESO. Coxe re DAWLANCE (Private) Limited: cece (©2019 hee Unters of The Air Fryer Microwave apenas apc nd peri Oven Launch nage cones pertone e os foi7reol poses} pursgepbconhomelye @SAGE Ehsan ul Haque! Abstract ‘Onseptember 7th 2015, Me Hasan Jameel, Head of Marketing at Dawlance’,needs to firm up marketing ‘mix deals forthe planned launch of chee frst microwave oven with air fryer technology. The original ‘lan was to launch the ar fryer 33 fie-n-one microwave oven which would allow consumers to heat, £00k, bake, gril andar fry food items using the same oven. Some managers at Dawlance; however, are ‘Concerned that offering so many options in one oven would increase the complexity and costs leading ‘te high prices and reduced sales. They thnk hata fryer technology should be offered 38a stand-alone une similar to those of competitors. Pricing is alo a concern. Various price points from PKR. 18,000 Fo PKR 30.000 are posible Firally, che advertising and distribution spend is under consideration, Mr James! needs o finalise his recommendations for the upcoming presentation to the MD, Keywords "Marketing ar fryer, product lunch, Dawlnce, marketing mi, iffision of innovation Discussion Questions |. Would you rate Dawlance as a successful company? If yes, then what in your opinion are its KSFs? 2, How do Pakistani homemakers go about purchasing thir durables? Why isthe microwave penetration in Pakistan far lower than that of other major durales? 4. As Hassan Jameel what marketing mix decisions would you recommend forthe air frye launch? Why? (On 17 September 2015, the marketing team of Dawlance (Private) Limited; hereafter, Dawlance, was engaged in animated debates regarding the planned launch oftheir frst microwave oven wit at fryer technology. Dawlance, headquartered in Karachi, Pakistan, was a leading player inthe consumer durable "Lahore Unvesiy o Munagmen Science, ihre, Pai, ‘Corresponding author: san ul Hague, Lore Univers of Management Scenes, Lahore S479 Paisan mal ehran@lums eds‘sion Journal of Monagement Cg Journ of nee oven i sae or erly Ostober ded Mt. Hafan rod coustny The a yeiirowave oven ane wa8 CENT Tr eyennualpresentain _ Himéel, Geneal Manager Marking, was busy Sali S€8 CF Crp anc, Mr, Dpvoad to-Mr Bishis Dawood’ CoO sd founder, andthe majonty sarchol@e °- coj considerable pride ‘raditionally played a leading role inthe marketing of Dawlance Pro ok ot {vthisrole: Consequently, Mr. James wanted to ensure that no Ie ‘The debate ainongst the marketing team was on almost all the ¢ ET Jameel was keen to launch the ar fryer microwave oven asa five-in one Nyt allow consumers to heat, cook, bake, grill and ai fry food items Usith ‘Competitive air frying product inthe market offered nly al rying capa favour of launching a less souped-up version or, better stil simply ana crowave ov me microwave Oven. ome managers were in "The second area of debate id at two price points, ‘as the price ofthe produet. Competitive air fryer only products were being S00 © Ning of Pc fn coma Tenino ee launching a five-in-one product there was a debate as to how much premium should b= CAT i tuming off the price sensitive market, Finally, there was fierce debate onthe marketing const plans for the launch. Given thatthe airfyer concept was new to Pakistani housewives, 7 ‘market communication investment was needed for consumer eduction. Dawlance had tadiion oY relied on its extensive network of dealers to educate the market with some support fom television air iyer microwave oven market seemed too small for any significant TV-based communication. However, some managers worried that not going on TV might lead to disappointing sales DAWLANCE (Private) Limited Dawlance was established by Mr. Bashir Dawood in 1980 in Karachi as a private limited company. ‘His father, Mr. Suleman Dawood, was a leading industrialist of Pakistan in the sixties. The factory to Produce refrigerators was established in Hy about 100 kilometers north-east of Karachi. Prior to Dawlance, most refrigerators sold in Pakistan were imported into the country. Dawlance soon created a strong brand name in the refrigerator market for reliable products with great after-sale service. In 1988, Dawlance started making deep freezers and over time diversified into other home appliances (see Exhibit 1). The core value at Dawlance had always been the reliability of its products and this claim ‘was ensured across various functions, such as manufacturing, HR and customer services. Dawlance imiaintained superior quality standards by being the frst Pakistani durable manufacturer to be awarded. the ISO 9001, ISO 14001 and OHSAS 18001? certificates. ‘By 2015, Dawlance had revenues of more than PKR 20 billion, a head count of over 1800 employees, and growth rate of more than 10 per cent in an otherwise sluggish economy. The company website ‘declared the vision of the company as ‘Make Dawlance a global brand by practicing Reliability: Make Pakistan proud of us’. Its mission was to ‘promote reliability in everything we do in the field of the household appliance’. In the pursuit of becoming a global brand, Dawlance had ventured out to several other countries. It was exporting its products mainly to Africa and the Middle East. Consumer Behaviour jstan, witha population of over 190 million in2015 (around 40 per cen living in urban areas), had alarge Pakistan wither aay commie opts, cpl wi um gon sal cee ‘modern living standards had created a huge demand for durables. Increasingly many homemakers in urbanHoque ise eee tee tT, hous Frade ants king up bs ouside the house nding to increased demand or time-and effet saving brofets The cine conditions of eee htt ring sumer abo fel oa demand fr bigeratrs 3 amongst those who could afford them. During the fst decade ofthe twety-Birst- Cel ‘government policies of easy availability of consumer credit gave a major fillipto both manufacture ‘and purchase of consumer durables. This trend however, slowed down somewhat with the charge of the goverment and, more importantly, with the massive increase in electricity load shedding on account of the poor supply situation, The price of ect alo inereased signicaly fom 2008 to 2014 inorder to bboth manage the demand and circular debt created in the process. Nevertheless, the penetration cf various nsequently, they had established 260 service centres all over the country. Nineteen of these were cea oumed, twenty-five franchiser-owned, and the est operated as authorized contract workshops. i ofthese establishments were manned by Dawlenceained engineers and technicians and carried sufficient inventory of spare parts to ensure a quick tur-around of any complaints. A univesal access ‘number was provided to customers to report any problems fe of charge Inorderw service the vast dealer network, Dawlance had established comprehensive sales manage ‘ment system. The national sales manager reported directly to the managing director. Thee regiocel ‘managers (orth, south and centre) reported to him. Each eglonal manager had four to six branch man- agers reporting and in turn, each branch manager looked a two to thre eritres. There was a total Sere ranch offroad in argr cies and fory-fve tetris. The primary esponsbilies of ne branch managers included forecasting se othe next or mnths on aol bss, alosting "TSM wath font ean tcthoe of Davee sevcng ane eae TSM. a one of Dawlance servicing anywhere ftom haty ihe hee rs within is teritory His responsibiles included meeting sales targets, tly shipments os redeal: seo te eae ye generat invoices based on the avaablyof products in warehouse, and ensure shipmmece ores eae oe days. Every dealer was visited once a week. TSM played a key roe in educating deer Bout easany a future Dawlance products and also helped dealers in making ther sales forecast tobe sent tothe foranul planing TM cae wit vying nsec ackonds and eprenos in O1a she rade inthe hiring cteria of TSMs, A minimum qulifeatin of an MBA, ge Was Sehnert mimaene et around PKR 50,000 would bein salary and PKR 55,000 in commissions In adltion TShgo ogo ME ce ene i om ei Te in the market and competitors had ofen ded Dawlance for sales and management eee tae ‘Marketing Communication Practices ‘According to top management, Dawlance kept a healthy balance between the of marking a8 Doth were deemed important Over he years, Devinn oes oPul ecmponents iad created a strong brand6 third most favourite brand amongst rand election survey conducted by top tn ne foal engi 2 ae pect a evenck IPSOS, Pakistan, Marketing communication spend was tYP! ten ATL which primarily included sec. ‘cent of the advertising ‘budget was spent su lance {Gee Es), Arun 8 pt of A pmpusglgted the quality atid of Dawionee products and the tagline ‘Because Dawlance is Reliable” had become very Vatroductions. The er of during product Eypiclly scheduled Gaing the peo sling seasons of summer or during procuct UAVS ee ¢ ofthe annual remaining 15 per cent of the communication budget Was i a lothes Dryer 7 8 u 2 balcoware Oven 7 2 to A art tere 1 : : j@parate Deep Freezer 2 s a Electric Kettle 1 3 ' - Ecstr ' i ' - facuum Cleaner D a : - Dish Washing Mating 1 f \ : Source: Comune Soko Pion 317915 po an ‘Notre rer 7 ora aol Selon Exhbie SEC Wie Fenton of For Mor Dube Teter Caer Winger ven $C eRe net a a . Cr er ee c > 3» 8 @ #8 S&S 4 > Be Gl Sr . DO CUD sCrt. Sources Cons Sokol es 200-01 kn Notas brrndt stetan rol oa 2 $6 Acmned iene, Exhible 4. Marat Share natn Vriut Dube Cg Pitre conor mn me mista Sones Refrigerators 45% “a 4% 1 Deep Freezers 2% 26% 26% 3 Air Conditioners 20% 18% 1% 3 ashing Macit * tox ime ‘i Pcroware Ove Dawianee a sx sx ' nome ios ie mm ore is 6 1% Haler 8 - « ret 1 « ‘Source: Case Writers Estimates.Exhibie 5, An Ex + An Example of Monthy Sales —— tly Sales Policy Announcement Deut Sales Policy on Eid ul Aaa from Dawiance Seance celebrates Eid with ts Dealers by providing the s Purchase of all products. Even better, these BU! ular invoice without any target or other conditions. (This offer is valid on selected models fora limited period on) J [As per Dawiance trations BUMPER GIFT offers provided for September 2015 £0 eas eae ‘could maximize their incentives by invoicing more items. Now you can invoice Refrigerator models according to Table A below sortunity to win BUMPER Pepe provided on the sma fantasti Of re $ would be provi IMPER GIFTS would TAaLEA Modeliseries Modeiiienes Quntiy Free Gs exe) ‘Any Bedroom 3 OWEK #203 or OWTE- 7 telrigerator model ce ‘Any REF 9122 REF 3 MOA er MO-10 2 9144 REF 9166 models MOA or HO-7 or MD ' ‘Any REF 9144 WB/ REF ‘91668 IREF 9170WB. lor MDS 7 REF 9175WB! REF 9188 models Any REF 9188 WB) a DW.II2CHZ or DW- 2 REF 91996 models TIMP or DW/I28G or (OW-5100 or OWA}.1002 ‘and invoice Split Air Conditioner models according to Table B below Jae ModelSeries ‘Any Split AC Model v MO-4 or MD-10 T (15,2 Tons) For details on schemes for Microwa ‘Source: Company document ‘Ovens and Automatic Washing Machines contact your Exhibit 6. Essmated Ad Spends for Various Durable Brands (PKR in Millon) Exhibit 6. Eimated Ad Ser Oo oe ‘Ri Conittoner Cavegory a TC Dawiance Fa 0 a Gree n ‘ : Haier 2 3 5 Orient a 3 * 25 4 Kenwood (Exide 6 continued)“ ‘Asian Journal of Management Coy aap acer (Exhibit 6 continued) Relrigerators Category a 2 zt Spend Brands aaa Spend ee Dawlance im Fa ee ° & n 100 Orient a u i a s4 58 Microwave Category wae 2013 2014 2a Brands Spend Spend zt Dawlance 2 8 D Homage ‘a 10 ‘Source: ave Writers Enimaen Exhibit 7. Advertisement for Dawiance Microwave Ovin i feed EES PREM accion oti press he sure buton ‘Audio: Muse and hen clicking Video: Hen wats for 2 minutes ‘ideo: After 2 minutes the chick is hatched Ale Mure nd hen cucking Ado: Chek Moma Hen: My baby (Ese 7 comined)+ Lay CCvek stand Io front of Dawlanca Videos Hen walks away with th ‘Audio: Mala voice over: Eventing gets heated in 2 Microwave Ovan\ ‘minutes in Dawlance Microwave Oven ‘Audio: Only Dowlance brings solutions. ‘Source: Company documents. and Usage of Diferene Exhible 8. Consumer Insights for Cook King (May 2008) Aware Microwave Functions Funetions ‘Awareness Usage. Heating 6x 64%, Defrosting 100 4 Cooking ” 2 Baking 4 » Grilling a " Auto menu 4 7 ‘Source: Company documents Exhible 9. Key Market Research Findings (Jan 2009) (PI of 2) “Top of Mind Awa Brand Ownership Brand May 2008 January 2009 May 2008 January 2009) Dawlance 36% 40% 2% 728% Ls 21 7 Is 16 PEL 2 3 2 3 Kenwood ' 4 ° ° Haier ' 3 o 7 t 7 2 5 Orient Souret Ganga coExhibt , €9 Key Markat Research Findings jn 2009) (P2 0f2) \wareness Levels of Various Attributes of Convection MW (Jan 2009) inn eee 2 ‘Convection y he « Faria w atin ity with Chef Gulzar a 's Recipe 5% Frome Anmrsoes of Fost! Recht _ No res o S 10 ~ Wilingness to Cook in Microwave res 46% . Noresponse Source: Company documents Exhibie 10. Oawlance Microwave Oven Price Range Price Range Microwave Oven Capacity Tree. 5,000-8,000 MD4N 20 Heating MDs 2oL Heating MDa 20L Heating Mo 2oL Heating Mo-7 2oL Cooking and Heating Mp-10 20L Cooking and Heating (00-1 1,000 Dw.236 rou, Heating Dw-387 Be Heating Ww.390M BL Heating ow-295, 2L ‘Cooking and Heating ow:373 Be Cooking and Heating ow.297 Gs 20L Cooking, Heating and Griling 11,100-16,000 Dw.112 CHZ. 20L Cooking Heating, Griling and Baking DW-393 GSS BL Cooking Heating and Gilling Dw.250 cS 2st Cooking, Heating and Griling Dw-395 HP. 2L Cooking, Heating and Griling Dw.397 HP. 25L Cooking Heating and Grilling Dw-128G BL Cooking Heating and Griling Dw-131 HP. 30L ‘Cooking, Heating. and Griling (Gite 10 cominved)Hoque 7 (Eb 10 continued) ———— Price Range Merawave Oven Capacity Type Dwaing 201 ‘Cooking, Heating and Grilng DW.136.6 x6 Heating and Geiling 14,100-25,000 Dw115.cHz ae Cooking, Heating, Griing an Baking DW. HZP at Cooking, Heating and Grillg Dwt62 Hz ae Heating Source: Company decumana: Exhibie 11, Results of the Air Fryer Product Concept Test Awareness of Air Fryer Technology Response Percentage Response CS rconinge Yes 3 No 7 king and Purchase Intent Scores* of Air Fryer Microwave. ie ee ee eee) a ORE Purchase 81 892003 4 5 6 7 8 9 10 Likelihood See rere eed Expected Price of the Air Fryer Microwave er ee Pri ice Range (Rupees) Percentage 7 19,000-20,000 a7 21,000-22,000 B 23,000-25,000 B ‘Source: Company document, (Exhibie 12 continued)1a Asian Journal of Management Cases Aiton fur of Menzement Cases (Exh 12 conned) Notes 1 Paxman neaweal xchange forthe US Dll tothe Pakistani Rupee was 102.65, Source: tate Bank of akin, wor. sp ong pkesodaiibf arch al, sccesed Dececos eon 2 eee ccepatnal Heath and Sfey Management Some Reguremen(offially DS OHSAS Standard for occupational 3 1S Dolarto the Pakistan Rupes wat 93.28 Source Sate Bank of hls accessed December 2017 4 US Dolarto the Pakistani Rupes wa 6,81, Source: Sate Bank of hls, secessed December 2017 s 6. Biryani wat a popl 77. Korma wa dish cons 8. Gulzar Husain was dishes 9. 102007, the average exchange rt fo the US D Pakistan, wow sbp.orgphecodsabtrchls secused erence 10. Samora isa fed orbaked dish wih savoury ing sich a ped postr, es, mined mea te 11 Paka i ied snace (rite). 12, Laore, Rawspindslamabed, Quota, Hyderabag, Kare 15 40 ites ober than the 10 key cites laity iy di ically made of equal prt ee and meat, isting of meat or vepsabe braised in pied sauce made wih yogu, oe ofthe celbiy ches of Pakistn made mous ou aeoaot eo bannshs lke Masala TY, sepeciaty by hamenchan ee crt an uta uae was reputed for oriental tad contin ol to the Pakistani Rupes was 6072, Source Sate Bank of chi, Faisalahad, Gujranwala, Peshswa, Mulan