www.AssignmentPoint.

com

Letter of Transmittal

December 27, 2011.

.
Associate Professor
Department of Marketing,
University.
Sir,
With due respect, we are here to submit the following report on
Walton Bangladesh according to the instructions given by you.
After going to several Walton showrooms in Dhaka and doing a
thorough online research on Walton Bangladesh, we have been
quite successful in collecting necessary background information
about Walton Bangladesh. A survey among the existing and
prospective Walton users also helped us to understand the market
trend and the consumer behavior. The following report is the
result of our findings and efforts.
We appreciate this opportunity to work under you.

Sincerely,

.
School of Business

www.AssignmentPoint.com

Executive Summary

This report was commissioned to analyze and evaluate

performance and future prospects of Walton in a growing
domestic electronic market.
The research reveals that in a continuously growing market,
Walton has become a reliable name for customers. Countrywide
network, inclination towards quality and dedicated team of
employees are the main causes of its success. Though it had
started business with home appliances, yet it has always been
committed to satisfying customer demand by introducing new
products. Recent production and selling of motorcycle and airconditioner testifies that position of Walton.
Walton has a goal to double overall market share in the next 5
years. It has successfully positioned itself as a customer friendly
and eco-friendly company. Its after sales service has contributed
tremendously in building this image in customers minds.
Since its target market is middle-income people, the price of their
products is comparatively lower than those of competitors. This
strategy helps the company greatly in a price sensitive consumers
market. In recent years Walton has increased promotional
activities through organizing various national sports events.
Further investigations have revealed that to achieve the role of
market leader, it will face challenge from foreign brands.
Moreover, rapidly growing demand from customers for electronic
products may put pressure on Walton. It has adopted market
penetration, product development and market development
strategy for future growth.

www.AssignmentPoint.com

The report has found the prospects of Walton promising in its

current position. Favorable government policy will help it expand
domestic and international markets in the future.

Table of Contents
Particulars
Page No.
Executive Summary
1.Introduction
01
1.1.Origin

of

Report

01
1.2.Objective
01
1.3.Methodology
01
1.4.Limitations
02
2.Company
03

and

Market

2.1.Electronics

Background

market

in

Bangladesh

03
2.2.Walton

HIL

04
2.3.Competitor

Analysis

05
2.4.Market
06
3.Strategic
07

Situational

Share
Analysis

3.1.Market

Analysis

07
3.2.Market

Segmentation

07
3.2.1.Demographic
08
3.2.2.Geographic
08
3.2.3.Psychographic
09
3.3.PEST

Analysis

3.4.SWOT

analysis

10
11
4.Marketing

Strategy
www.AssignmentPoint.com

12
4.1.Market

positioning

12
4.2.Marketing

Mix

12
4.2.1.Product
12
4.2.2.Price
14-15
4.2.3.Place
15
4.2.4.Promotion
15
5.Financial
16
6.Future
16

Analysis
Growth

and

Challenges

6.1.Current

Market

Status

16
6.2.Challenges
17
6.3.Future

Growth

17- 18
7.Recommendation
18
8.Conclusion
18
9.Appendix
19-20
10.References
21

List of Tables

Particulars
Page No.
Table
04
Table
14
Table
14
Table
14

01:

Import

02:
03:
04:

of

Price
Price
Price

home

appliances

comparison

in
of

comparison
comparison

www.AssignmentPoint.com

Bangladesh
Refrigerator
of

of

TV
Motorcycle

Table
16
Table
16
Table
18

05:

Financial

analysis

06:
07:

of

Market

Future

growth

Walton
comparison

of

Walton

HIL

List of Figures

Particulars
Page No.
Figure
05
Figure
09
Figure
09

01:

Waltons

02:
03:

Walton
Walton

competitors
plazas
plazas

Analysis
in

in

Dhaka
Chittagong

1. Introduction
1.1. Origin of Report
This report was assigned by Professor ., Department of
Marketing, of MBA 07th batch, School of Business, University.
www.AssignmentPoint.com

1.2. Objectives:
Learning a didactic approach to Business Communication.
Incorporating
theoretical
education
with
practical
experience.
Gaining knowledge about the current market trend of the
country.
Getting acquainted with different policies, rules and
regulations of the government on the products concerned.
1.3 .Methodology:

The methodologies used in the research process for this report,

were:
Data Collection
Primary data is the information that we collect first-hand and
secondary data is the information collected by others and used by
us. For data collection, we used three approaches:
a. First, we conducted some field research. We went to some
Walton retail
outlets and asked the customers about their
valuable suggestion and opinions.
b. We searched about Walton on the Internet and found some
important information regarding their company background,
product lines and promotional programs.
c. We went to Walton head office and collected the annual reports
for Walton Bangladesh for the year 2010.

Surveys
For surveys, we made a questionnaire for the buyers. The
questionnaire for the buyers included questions about their
www.AssignmentPoint.com

economic background, their preferences and their buying budget

and frequency.
To circulate the questionnaires, we followed two approaches:
a. We handed the questionnaires personally to people. We went to
the retail outlets and gave the questionnaire to the people there
and collected their answers. Then we chose some random
prospective buyers and handed them the questionnaire prepared
for them. The random sampling included people from our
residential areas, our friends and the students from different
departments of University of Dhaka.
b. For the prospective customers, we used an online survey. We
circulated the questionnaire in different Face book groups and
collected the answers.
Record analysis
After collecting the data, we recorded them. Then we analyzed
them by doing the following:
a. We collected the survey answers and made charts and graphs
using that data for supporting the report.
B .Then we analyzed Waltons annual reports and extracted our
required figures from them.
1.4. Limitations
Though we tried our best to make a hundred percent perfect
report, a few limitations held us back. The main limitations that
we faced, were
a. As many of the common products were barred, we had to
choose one from a limited number of options.
b. When we went to collect information from the Walton outlets,
they were not fully able to cooperate with us, as our required
information was confidential.
c. There was not enough data in the websites.
www.AssignmentPoint.com

2. Company and Market Background:

2.1. Electronics Market in Bangladesh
The Electronics Market in Bangladesh is an ever-rising industry.
The appropriate market size has never been determined as it is
ever changing. The whole market can be separated into several
segments like:
Semiconductor Market
Electronics Appliances Market
Raw Materials and Spare Parts Market
IT Market
Walton is one of the major players in the electronic appliances
market. They are also manufacturing motorcycles alongside home
appliances such as television, refrigerators, air-condition etc.
The market of these products relies heavily on the average
household income. For most people in Bangladesh home
appliances had been luxuries they, which they cannot afford, but
recently the situation have been changing. Over the last 10 years,
there has been massive economic growth in the country, which
has increased the income of lower-middle and middle class
people. So the demand for home appliances has increased
substantially.
If we look at the annual GDP growth of the country in the last 10
years, we can see that there has been a steady increase.
One of the main reasons of this growth has been because of the
increased investment in the fast growing sectors of the economy,
which has reduced the rate of unemployment
Drastically over the years.
It is evident that the increase in earning of the population has also
had an impact on the buying behavior. Middle and upper middle
classes have emerged and reached a certain level that is
attractive for the importers and manufacturers. Bangladesh Bank
has the records of imports of Home Appliances over the years.
www.AssignmentPoint.com

Table 01 : Import of Home Appliances (BDT)

Item
Electrical
Appliance

2004200520062007200805
06
07
08
09
Home 150241 204951 243665 236150 190548

At first there was a huge growth to the numbers of Home

Appliances imported in the country, but the numbers have
declined in recent years, as tax holidays on imported parts and
high import tax on electronic products have made companies
focus on assembling and manufacturing their products in
Bangladesh.
2.2. Walton HIL
Walton Hi-Tech Industries Ltd (Walton HIL) is one of the best companies in the
electronic sector of Bangladesh. Walton is one of those few Bangladeshi
companies that export electronic products since most of the companies in
Bangladesh import products of various famous brands. The company was
established in 1977. Since then, it has been setting new benchmarks in
production of electronic goods in Bangladesh.
The company has a yearly production capacity of 1.4 million pieces of fridge,
300,000 pieces of air conditioner and 300,000 pieces of motorbike. In its
early stage, the company used to produce home appliances. Today their
product mix includes Mobile Phone, Generators, and Motorbikes. In 2009 the
company signed an agreement with the Malaysian auto manufacturer Agatha
to set up an automobile plant in its factory premises. After meeting the local
demand the company is exporting its products to Qatar, Dubai, Abu Dhabi
and Kuwait of Middle East, Ghana of Africa and India, Nepal and Bhutan of
South Asia and U.S.A. It also wants to export its products to France, Italy,
Germany, Spain and other European countries. Walton has been successful in
capturing this large international market because of its high quality products.
To ensure this high quality of products all the members of the Walton family,
both factory and administrative members, work very hard round the year.
The factory of Walton is situated in Saver and the corporate office is at
Dilkusha C/A, Dhaka. There are 120 outlets of Walton throughout the country
so that customers everywhere can buy Walton products. Walton has a
www.AssignmentPoint.com

dedicated team of skilled engineers and technical personnel from home and
abroad who ensure quality products for the customer. Because of this highly
skilled team Walton can offer the customers a wide range of products

2.3. Competitor Analysis

In the field of home appliances such as television, refrigerator,
freezer, air-condition etc. some of Waltons competitors are:
Competitor

Television

Refrigerator

Air-Condition

LG

LG

LG

Sony

Samsung

General

Singer

Sharp

Gree

Samsung

Panasonic

Samsung

Panasonic

Whirlpools
www.AssignmentPoint.com

Figure 01: Waltons competitors Analysis

Most of these brands have been in this market for a long time. But
none of them were able to match the market growth of Walton in
the last 3 years. Although LG-Butterfly is the No.1 home
appliances brand in the country, Walton is catching up fast.
Walton has started manufacturing major parts for the assembly of
motorcycles. Right now they hold nearly 8% of the market share.
Its competitors are:
Bajaj
Hero Honda
Dayun
TVS
Singer
Butterfly
2.4. Market Share:
By conducting a survey among consumers we were able to
determine peoples preference of brands while buying home
appliances and which brand of product they have bought. The
market demand of different brands of television, refrigerator and
motorcycles has been calculated by survey method. It must be
noted that had the survey been centered on middle class families
in rural areas, Walton would have had a much higher market
share since these people are the main target market of Walton.
Also, Since Walton is the sole domestic producer among these
brands; it enjoys some tax reduction that makes it capable of
manufacturing and selling its product at reasonable prices. This
facility provides Walton with a competitive advantage. Hence,
Walton plans to target another 15% of the market in the next 5
years and they are confident that they will be able to easily
achieve that target.
www.AssignmentPoint.com

3. Strategic Situational Analysis:

3.1. Market Analysis
Bangladesh, with its growing population and economic growth,
has huge demand for household products. The fact that only
about 60% of the country has electricity available proves that
when electricity will be available throughout the country, demand
will increase further.
As the people of this country are mainly price sensitive, Walton,
being the sole manufacturer of refrigerator, freezer and
motorcycle, is very keen to meet the demand of this large market
by providing competitive prices.
Waltons primary goal is to capture the local market, as they are
still behind market leader LG-Butterfly. But they are also exporting
their products. Already they have customers in Myanmar, Bhutan
and planning to expand their market to Africa.
3.2. Market Segmentation
Segmentation is one of the most important factors of strategic
marketing. Market segmentation is one of the steps that go into
defining and targeting specific markets. It is the process of
dividing a market into a distinct group of buyers that require
different products or marketing mixes. Markets can be segmented
or targeted using a variety of factor. The bases for segmenting
consumer markets include:

www.AssignmentPoint.com

Demographical bases (age, family size, life cycle,

occupation)
Geographical bases (states, regions, countries)
Behavior bases (product knowledge, usage, attitudes,
responses)
Psychographic bases (lifestyle, values, personality)The
market in which Walton is doing its business is consumer
market and Walton mainly segments its market base on
Demographic, Geographic and Psychographic basiss

3.2.1. Demographic Segmentation

In segmenting the market on demographic basis Walton mainly
considers occupation and family size of the consumer. It targets
the people of middle-income level and designs its products for
mainly nuclear family.
3.2.2. Geographic Segmentation
Walton segments the whole country in eleven zones for marketing
purpose. They are
Dhaka North Zone
Dhaka South Zone
Dhaka South-West Zone
Chittagong Zone
Camilla Zone
Barisal Zone
Jessore Zone
Sylhet Zone
Bogra Zone
Mymensingh Zone
Rajshahi Zone
Area Managers are responsible for these zones and it is their
responsibility to develop market there. Product demand and
response of the customer are not same in all zones.
www.AssignmentPoint.com

Maintaining the sales in high demand zones like Dhaka, Camilla,

Bogra the marketing department is trying to increase their sales
in low demand zones.
Currently, Walton has either their retail shops or dealer shop in all
of the 65 districts of Bangladesh. They have multiple shops in
Dhaka and Chittagong in order to provide maximum convenience.

Figure 02: Walton Plazas in Chittagong

Figure 03: Walton Plazas in Dhaka

www.AssignmentPoint.com

3.2.3. Psychographic Segmentation

Walton markets its product by using psychographic segmentation.
They use lifestyle to segment their market. For example Walton is
marketing relatively cheaper CRT Television for lower-middle
income and rural people and at the same time LCD Television for
higher middle-income people. It also designs the refrigerators of
different size and capacity considering the people of different
lifestyle.
3.3. PEST Analysis
Political Factor:
High Import Duty on Imported Home Appliance Product
Export promotion schemes of Bangladesh Government
Tax Incentives on Import of Plants
Constant Government Support

Economic Factor:
Increase in per capita income
Growing GDP high disposable income
Increase in Spending Power
A huge prospect of a profitable export sector
Socio-cultural Factor:
Manufacturing Eco-Friendly product
Changing lifestyle of middle income people
Technological Factor:
Improvement in Technology made electronics cheaper
Increased quality of production
www.AssignmentPoint.com

3.4. SWOT Analysis:

4. Marketing Strategy:
4.1. Positioning Strategy
Walton has created huge enthusiasm among the consumers of its
target market with its slogan Aamader Ponnyo. They accepted
www.AssignmentPoint.com

Waltons endeavor of manufacturing some electronic items like,

refrigerator & Freezer and motorcycle for the first time in
Bangladesh, and are more than willing to buy a product of high
quality made in our own country. On the other hand, as a local
manufacturer Walton can sell quality products at comparatively
lower price than other competitors.
It also makes its product available at the nearest possible places
in each areas of Bangladesh through Walton Plazas (own
showroom) and countrywide dealers. New Walton Plazas are being
opened frequently in different places of the country for getting
closer to the customers.
Another strategy of Walton for creating a concrete place in the
customer mind is its after sales service. In order to providing the
quickest possible after sales service to the customers. Walton has
already established 39 Service Centers and opening more service
centers is under process. Walton equally values its sales and after
sales service for maintaining a long and positive relation with its
customer and thus retain and increase the customer.
4.2. Marketing Mix
4.2.1. Product:
Walton has a good number of products available in the market.
The company produces home appliances, mobile, generator and
motorbike. A brief description of its major products is given below:

Refrigerator
Walton mainly produces home appliances. In fact in its website
the company is introduced as the pioneer in refrigerator
production in Bangladesh. Walton Refrigerator & Freezer ensures
www.AssignmentPoint.com

highest quality compressor, Condenser is made by 100% copper,

which lasts for 20-30 years. The most important thing is that
every spare parts including door with different color are
changeable and available everywhere over the country.
Television
Walton produces LED, LCD, and CRT televisions. Walton Television
ensures home cinema entertainment. Walton Televisions d4ta
Digital Technology is one of the most innovative technological
solutions that automatically reduces video noise, Selects the best
picture and performs fine-tuning by auto frequency tracking
technology.
Motorcycle
Walton motorcycles are now competing with the Indian HeroHonda and TVS brand. The motorcycles have become famous
because of the special specification like mobile phone indicator,
Digital gear display, Fuel location meter, Air shock absorber,
Remote control, Hydraulic Brake, Anti-Theft lock and Alloy rim etc.
Walton motorcycles are also fuel-efficient.
Other than these products Walton also produces Mobile handsets,
generators, air conditioners, DVD players, and microwave ovens.

www.AssignmentPoint.com

Walton Product
4.2.2. Price
Waltons main target market has always been middle-income
group. SO they have been very careful in setting their price of
product. Also the fact that they manufacture their products, it
allows them to set a lower price than their competitors, as they
dont have to pay heavy import duty. Below is a comparison of the
prices of different products of different brandsTable 02: Price comparison of Refrigerators
Model
10 CFT
10.5 CFT
11.5 CFT

Walton
26,200
28,100
29,700

LG
35,000
38,300
,40,600

Transtee
32,000
32,500
,36,000

Sharp
29,500
31,000
3700,0

LG
28,350

Sony
26,350

My One
22,700

65,600

59,500

Table 03: Price comparison of TV

Model
Walton
29
Color 18,500
TV
37
LCD 48,800

www.AssignmentPoint.com

TV
42
TV

LCD 75,200

95,000

88,000

Table 04: Price comparison of Motorcycle

Model

Walton

Bajaj

125 CC
110 CC
Cruiser

103,900
96,000
93,300

175,000
148,500
120,000

Hero
Honda
155,000
145,000
110,500

TVS
160,000
140,500
98,000

In all three products in which we have done market research, it is

evident that Walton is providing the consumers with the least
expensive product. It is vital for Walton as price is the only tool
where they have a superior advantage over other brands.
But it must be noted that consumers in higher income level
also look for quality products. So Walton n e e d s t o fi n d a
fi n e b a l a n c e b e t w e e n p r i c e a n d q u a l i t y a s t h e y m o v e
f o r w a rd i n t h e coming years.
4.2.3. Place
For making the product available to its target customers Walton
use its distribution channel. Walton generally uses its own
transport facilities for reaching the product to its120 Walton
Plazas and about 700 dealers. If any dealer wants to use his own
transport for transporting Walton products from factory to his
shop, he gets 1% reduction on dealer price.
4.2.4. Promotion
Ever since Walton started its production in its manufacturing
plant, they have started a wide promotional campaign on its
product. Their tagline Amader Ponnyo reflects the pride they
take by being able to sell home appliances manufactured in
Bangladesh. Right now Walton has TVCs running in all major
www.AssignmentPoint.com

satellite channels of Bangladesh in peak hours targeting their core

target customers. Also they have numerous billboards and
advertisements in print media. Also their 120 Walton Plazas
across the country also works as a major advertising tool. Walton
has recently started sponsoring different major sports event in the
country. Recently they sponsored their first International Cricket
Tournament and thus it allowed their brand to be viewed by
millions of people across the world.

5. Financial Analysis
Summary of the Financial Report of Walton for the year 2010:
Table 05: Financial analysis of Walton HIL
Particulars
Total Sales
Cost of Goods Manufactured
Gross Profit
Operating Profit
Net Profit

Amount TK.
2,553,024,782.10
2,414,093,716.05
305,852,566.6
99,636,450.2
26,530,733.5

6. Challenges and Future Growth

6.1. Current Market Status:
Although Walton is a growing brand, it is yet to establish itself as
the market leader. In fact it still has a long way to go, especially in
capturing the elite customer bracket.
Table 06 : Market Comparison

Walton
LG
Sony

Price

Quality

Variety

Distribu
tion

****
***
*

**
****
***

*
****
***

***
****
*

www.AssignmentPoint.com

Scoop
For
Growth
****
**
*

Singer
Samsung

***
**

**
***

**
**

**
*

**
*

We can see from the above table that clearly overall LG leads and
have a significant lead when it comes to these values. They have
been in the market for 20 years and have done remarkably to
capture nearly one-fourth of the total home appliance market. But
coming second right now is Walton. By providing the same quality
in much lower price, Walton has created an excellent brand
following. They have a very good distribution system, without lets
all over the country. But their main problem has been variety.
They are still way of the benchmark at the moment when it comes
to product variety. But Walton will put more emphasis in this
sector and plan to catch the lights of LG and Sony in the next 5
years.
6.2. Challenges:
Establish Walton as the No.1 Home Appliance Brand of the
Country
Capturing the market share of existing foreign brands
Bringing more variety in their product line
Continue increasing market share at the same rate over the
next 5years.
6.3. Future Growth:
Walton has decided to penetrate market, develop both market
and product to achieve profitable growth in future.
Market penetration
Through extensive promotion campaign Walton has set goals to
make more sales in future. Countrywide distribution system helps
it achieve its goals.
Market Development
www.AssignmentPoint.com

Walton is exporting its products in Middle East, Latin America and

Africa. It has plans to explore European markets also.
Product Development
Recently, Walton brought Air-Condition in market. Though it hasnt
gained spectacular market share yet, continuous customer
attraction reflects future.
Expected market growth of Walton in the next five years:

Table 07: Future growth of Walton HIL

Product Line
Motorcycle
TV
Refrigerator
Air-Condition

Present
Expected
Main
Market Share Market Share Competitor
5%
25%
Bajaj,
Hro
Honda
8%
30%
LG, Sony
13%
25%
LG, Samsung
2%
10%
LG,
Genersl,
Gree

7. Recommendations
To establish Walton as the brand for home appliances & other
electronic accessories, some changes are needed in its strategiesSwitch to Market Penetration Pricing without compromising
quality.
Partner with local and international OEM (original equipment
manufacturers)for elegant & sophisticated designs &
equipment.
Develop gaming consoles like Game boy, PlayStations, X-box
and medical appliances for caring old people through
innovative approaches.
Customer Loyalty Program.
www.AssignmentPoint.com

Yearlong incentives and special offers.

8. Conclusion
The company has been running its business with good reputation
since 1977.Establishment of Walton HIL to manufacture
Refrigerator & Freezer, Air Conditioner, and Motorcycle etc. In
Bangladesh is a milestone in the path of success and reputation
of the brand WALTON. Walton HIL is the first company to introduce
advanced research and manufacturing technologies and
equipment for household & commercial Refrigerator & Freezer,
Motorcycle and Air Conditioner etc. in Bangladesh. For
Bangladesh, Walton has become a company to be proud of in the
export arena. Walton has truly redefined Bangladesh from being a
consumer country to a producer country for home appliances.

9. Appendix
Financial Figures of the year 2010
Survey:
1. In what age group do you belong to?
15-18
19-21
22-25
26-30
30 and above
2. Currently which brand/brands of home appliances are there at
your house?
LG
Walton
Singer
Sharp
Sony
www.AssignmentPoint.com

Panasonic
My One
Marcel
Other (please specify
3. What do you value most when selecting a brand from which to
buy electronic items?
Brand Value
Convenience
After-sales Service
Price
Quality
Manufacturing Country
Other (please specify)
4. What is your assumption about Walton Products?
Made in Bangladesh
Very competitive price
Quality less than other foreign brands
Lots of TVC
5. Walton is the only company to mass-produce electronic items in
Bangladesh, Will it make you buy Walton products instead of other
imported ones?
Yes
No
6. Is there a Walton Showroom near your place?
Yes
No
7. Walton plans to produce first ever car in Bangladesh within 7-8
years. What are your thoughts?
Can't wait
Walton car! Are you Serious?
www.AssignmentPoint.com

I will still remain a Toyota guy

Will be proud to ride a Bangladesh made car

10. References
www.walton.com.bd
Arif Ahmed
Marketing Officer
LG-Butterfly
Annual reports for Walton Bangladesh for the year 2010.

www.AssignmentPoint.com