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A Study of Strategic Orientations, Pakistani Brands
and Implicatio ns

Rana Zamin Abbas

Research Associate SBE
University of Management and Technology

Dr. Zulfqar Ahmad (Corr espondence Author)

Assistant Professor, Hailey College of Commerce
University of the Punjab

Abdul Rafay
Associate Professor
School of Business & Economics,
University of Management & Technolog y, Lahore, Pakistan.

Abstract
Purpose of this paper is to explore the three strategic orientations (customer, competitive, and
technological) of the firm and new product performance. To understand which of three
different strategic orientations is more appropriate, when and why it is so in the context of
developing product innovations. To discuss Pakistani brands and develop prepositions with
reference to the working styles of Pakistani brands. It also discusses the theoretical and
managerial implications for business in Pakistan .
Keywords : Strategic orientation, Market orientation, Propositions, Pakistani brands

1. Introduction
There are three major strategic orientations of the firm that determine the success or failure
of new products: customer, competitive, and technological orientations. According to Narver
and Slater 1990 customer orientation is the firm s complete understanding of its customers so
that the company can be able to create special value for its customers .
In view of Narver and Slater competitor orientation is the ability to respond competitors
actions and technological orientation. In the views of Cooper and Kanter is the R&D
orientation of the firm which means that how active is the firm in adopting new technolog ies
and hi-tech systems with sophis ticated technologies for developing new products .
Interfunctional coordination allows for communication and exchange between the firm's
organizational units that are concerned with the three orientations (Moenaert et al. 1994).
Without interfunctional coordination, the new product development process would be ruled
by a single preoccupation (customer, competitive, or technological), which reduces the
innovation's potential performance . Therefore, interfunctional coordination is the mechanism
that enables the three necessary strategic orientations to work jointly.
2. Strategic Orientation and Successful Innovation
Narver and Slater's (1990) and Slater and Narver's (1994) articles are pioneer studies of the
impact of market orientation on firm performance. Firms that are market- oriented perform
better than the others. An important question, however, which has not been addressed in the
context of innovations, concerns the reasons for this finding; is it because these firms are able
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to design a better product and or is it because of a greater general effectiven ess in marketing
an innovation? For answering this we would capitalize here the research of Hubert Gatignon
and Jean-Marc Xuereb. They investigate if firm orientation has positive effects in the way
that innovations are marketed, beyond the greater performance due to having an innovation
with superior characteristics. They also investigate the impact of the firm's strategic
orientation on the characteristics of the innovations. They argue that certain kinds of
innovations are better developed when a firm stresses certain strategic orientations. These
three(customer, competitor and technology) orientations are all needed for designing
innovations that have a strong relative advantage and tends to suggest the following
propositions:
P 1: The more technology-oriented firms are, the more radical their innovations and the
higher the innovation cost.
P 2: The more competitor -oriented firms are, the lower the costs of their innovations.
Inter-functional coordination enhances the synergies among the three types of orientation to
design innovations that have a strong relative advantag e, are more radica l, and have a lower
cost. Regarding strategic orientation and new product performance
P 3: Interfunctional coordination enhances the interactions among the three types of
orientation necessary to market an innovation successfully .
In contrast, a competitive orientation is actually detrim ental to the innovation's marketplace
performance when demand is uncertain . In a situation of high demand uncertainty, all firms
have a hard time figuring out what the real market is and what users' needs are. What is
needed here is a customer orientation, but firms that are exclusively competitively oriented
tend to fall back on improper reliance on competitors' projects and products to infer market
needs. Competitive orientation enables the firm to do what it takes to reduce the innovation's
cost in high growth markets. Competitively oriented firms seem able to muster the willpower
to cut costs, rather than rely on product features to sustain high prices and justify cost
inefficiencies by product features. The story is different in declining markets, in which it
appears that as the firm's competi tive orientation increases, the cost of the firm's innovations
also increases. A competitively oriented firm is typically engaged in strong rivalries and
counterattacks with its competitors. This competitive behavior drives up costs in the short
run. In a growing market, the firm tends to recover these costs and find itself well positioned,
but in declining markets, a competitive orientation leads firms to increase the innovation's
total costs (production, R&D, selling and general administration, and marketing) through
competitive warfare.

3. Business in Pakistan
For the deeper understanding of the business in Pakistan, We would like here to capitalize the
results of Brand Election 2010 by incorporating the election results. The Brand Elections are
built on authentic research data of Consume r Multimedia Index (CMI) which is the first of its
kind and the largest single-source data in Pakistan with a most robust and representative
10,000 sample across 50 cities covering all SECs of Urban Pakistan. The results have been
organized in a few ways to shed a deeper light into the dynamics of these brands. Specifically
these elections have produced the following results:

Top 10 Brands of Pakistan

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Top 20 Brands of Pakistan

Top Brands by Target Audience
Top Brands by Region
Top Brands by 50+ Categories

4. Top 10 Brands of Pakistan

Being the crème de la crème of the Pakistani marketplace, these Top 10 brands are the ones
that have the strongest hold over the hearts and minds of the Pakistani people. Surf Excel leads
the pack, followed by National Foods at a close second. Glamour brand LUX shines in at
number 3, with Pepsi and Sooper high on their heels at the 4th and 5th position. Nokia,
Dawlance, Super Asia, and Mortein take the 6th, 7th, 8th and 9th position while Wall s closes
the top 10 listing.

Top 10 Brands of Pakistan

1 Surf Excel
2 National (Foods)
3 Lux
4 Pepsi
5 Sooper
6 Nokia
7 Dawlance
8 Super Asia
9 Mortien
10 Walls

Top 20 Brands of Pakistan

1 Surf Excel 11 Colgate

2 National (Foods) 12 Sunsilk
3 Lux 13 Tapal Tea
4 Pepsi 14 Rose Petal
5 Sooper 15 Sony
6 Nokia 16 Fair and Lovely
7 Dawlanc e 17 Rafhan
8 Super Asia 18 Disprin
9 Mortien 19 Shan Foods
10 Walls 20 Lifebuoy

Top Brands by Target Audience

Target Audience Winner Brand

Male Nokia
Female National (Foods)
Youth Pepsi

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Top Brands by Region

Region Winner Brand

Sindh Tapal Danedar
Balochista n Lux
Punjab National (Foods)
Khyber Pakhtunkhawa Lux

Top Brands by 50+ Categories

The individual category results show which brands rule which constituencies .

Main Category Sub Category Winner Brand

Communicatio n ISP PTCL
Mobile Phone Nokia
MSP Ufone
Durables Deep Freezer Brands Dawlance
Fridge Dawlance
Microwave Oven Samsung
Split/Windo w Haier
TV Sony
Washing Machine Brands Super Asia
Financia l Bank Account National Bank
Banks Personal Loan National Bank
Credit Card Bank Alfalah
Debit card Habib Bank
Food-Drinks CSD Pepsi
Flavored Milk Pakola
JNSD Shezan
Mineral Water Nestle Pure Life
Tea Tapal Danedar
Food-Househol d Cooking Oil Pakwaan
Ghee Dalda
Jam/Jelly/Marmalad e National
Ketchup National
Noodles Maggie Noodles
Packed Desserts Rafhan
Pickles National
Plain liquid Milk brands Milk Pak
Powdered Milk Nido
Recipes National
Spices National
Food-Impulsiv e Biscuits Sooper
Cigarett e Gold Leaf
Fast food restaurant KFC
Ice Cream Walls
Salty Snack Lays
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Household Care Insecticide s Mortien
Laundry Detergents Surf Excel
Surface Cleaner Harpic
Tissue Paper Rose Petal

Personal Care Analgesi c Disprin

Baby Products Johnson & Johnson
Diapers Pampers
Facial Wash/Cleanser Clean & Clear
Hair Removing EU
Sanitary Napkins Always
Shampo o Sunsilk
Skin Care Cream/Lotion Fair n Lovely
Soap Lux
Talcum/Pickly Heat Powder Tibet
Toothpaste/Toothpowder/Manja n Colgate
Transportatio n Airlines PIA
Car Suzuki
Fuel Stations Shell
Motorcycl e Honda

The results of the Brand Elections 2010 be it for overall Top 100 brands, by gender, by region
or even for the 50+ category constituencies, offers a great insightful gold mine for the
inquisitive mind.

If we look at the Top 100 brands make up vis a vis the category constituency they represent, 27
brands each have emerged from Household food and Personal care categories. This is
followed by 15 brands from Drinks , 9 from Durables , 8 each from Household care and
Impulsive food , and 5 from the Communication category. This in itself paints a bigger
picture for the categories width and depth of presence in consumers hearts and minds on one
end and the strength of the individual brands within each of these categories.

When one takes a deeper look at some of the Top 10 Brands of Pakistan, including the likes of
Surf Excel, Lux, Pepsi, Sooper, Nokia, and Dawlance, trying to decipher and understand what
separates them from the rest of the brands that have managed to find a place in consumer
preferences, the smart marketer can draw some very interesting learning.

Simplicity and clarity of purpose are the key ingredients of these top brands. They are well
chiseled and focused. Strong leadership, strong market orientation, intelligent thinking and
consistent commitment to core equity building more than anything else.

After gaining great insights from the results of Brand Election 2010 Pakistan, as such thirty-
four propositions are suggested for firms in the context of Pakistan .

Proposition 1: by Increasing customer -focus tends to increases in market share performance

in growing markets of Pakistan, i.e. the case of communication market in Pakistan . Examples
include PTCL (ISP), Nokia (Mobile Phone), Ufone (Mobile -phone Service Provider) .

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Proposition 2: By Increasing competitor -focus tends to increas e in market share performance
in stable and predictable markets in Pakistan, i.e. the case of food-drinks, and food-household
markets in Pakistan. Examples include Pepsi (Carbonated Soft Drink), Shezan (JNSD),
Nestle Pure Life (Mineral Water), Tapal Danedar (Tea), Dalda (Ghee), National (Jam, Jelly,
Marmalade, Ketchup, Pickles, Recipes and Species), Maggie Noodles (Noodles), Rafhan
(Packed Desserts), Milk Pack (Plain Liquid Milk Brands) and Nido (Powdered Milk).
Proposition 3: By Increasing in both customer-focus and competitor-focus tends to increases
in market share performance and decreases in ROI in the context of Pakistan, i.e. in the case
of Food-Impulsive market in Pakistan. Examples include Sooper (Biscuits), Gold Leaf
(Cigarette), Walls (Ice Cream), and Lays (Salty Snack).
Proposition 4: By shifting/replacing resources from external monitoring to internal operations
may tend to increases in ROI in stable and predictable markets in Pakistan, i.e. in the cases of
Transportation Market in Pakistan. Examples are Suzuki (Cars), Shell (Fuel Stations), and
Honda (Motorcycles) from Transportation Market.
Proposition 5: Greater the use of logic in strategic thinking process, the greater the firm in
rational thinking orientation, i.e. the case of Durables Market in Pakistan. Example is Super
Asia (Washing Machine) .
Proposition 6: Greater the use of creativity in strategic thinking proces s, the greater the firm
in generative thinking orientation, i.e. the case of Rose Petal (Tissue Papers) from Household
Care Market in Pakistan.
Proposition 7: Greater the use of deliberateness in strategy formation process, the greater the
firm in planning orientation, i.e. the case of Harpic (Surface Cleaner) from Household Care
Market in Pakistan .
Proposition 8: Greater the use of emergentness in strategy formation process, the greater the
firm in incremen talism orientation, i.e. the case of Tapal Danedar (Tea) from Food Drinks
Market in Pakistan .
Proposition 9: Greater the use of revolution in strategic change process, the greater the firm
in discontinuous change orientation, i.e. the case of Fair & Lovely (Skin Care Cream /
Lotion), Clean & Clear (Facial Wash / Cleanser), and Pampers (Diaper) from Personal Care
Market, and Samsung (Microwave Oven) from Durables Market in Pakistan .
Proposition 10: Greater the use of evolution in strategic change process, the greater the firm
in continuous change orientation, i.e. the case of Walls (Ice Cream) from Food-Impulsive
Market, and Bank Alfalah (Credit Card), and Habib Bank Ltd (Debit Card) from Financial
Market in Pakistan .
Proposition 11: Greater the use of markets at business level strategy, the greater the firm in
outside-in orientation, i.e. the case of Ufone (M obile Service Provider) from Communication
Market, and KFC (Fast Food Restaurant) from Food-Impulsive Market in Pakistan .
Proposition 12: Greater the use of resources at business level strategy, the greater the firm in
inside-out orientation, i.e. the case of Gold Leaf (Cigarette) from Food-Impulsive Market in
Pakista n.
Proposition 13: Greater the use of respons iveness at corporate level strategy, the greater the
firm in portfolio orientation, i.e. the case of Lux (Soap), and Sunsilk (Shampoo) from
Personal Care Market, and Walls (Ice Cream) from Food-Impulsive Market in Pakistan .
Proposition 14: Greater the use of synergy at corporate level strategy, the greater the firm in
core competence orientation, i.e. the case of Surf Excel (Laundry Detergent) from Household
Care Market in Pakistan .
Proposition 15: Greater the use of competition at network level strategy, the greater the firm
in discrete organization orientation, i.e. the case of PTCL (Internet Service Provider) from

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Communication Market, National Bank (Bank Account) from Financial Market, and PIA
(Airline) from Transport ation Market in Pakistan .
Proposition 16: Greater the use of cooperation at network level strategy, the greater the firm
in embedded organization orientation, i.e. the case of Nestle Pure Life (Mineral Water) from
Food-Drinks Market acquired AVA, and Walls (Ice Cream) from Food-Impulsive Market
acquired Polka, in Pakistan .
Proposition 17: Greater the use of compliance in the industry context, the greater the firm in
industry evolution orientation, i.e. the case of Walls (Ice Cream) from Food-Impulsive
Market installed first waste treatment plant in Pakistan .
Proposition 18: Greater the use of choice in the industry context, the greater the firm in
industry creation orientation, i.e. the case of Cement and Fertilizer Plants are multi-fueled by
gas as well as coal in Pakistan .
Proposition 19: Greater the use of control in the organizational context, the greater the firm in
organization leadership, i.e. the case of Packages Ltd. in Pakistan .
Proposition 20: Greater the use of chaos in the organiz ational context, the greater the firm in
organizational dynamics orientation, i.e. the case of Tibet (Talcum / Prickly Heat Powder)
from Personal Care Market, and Lahore Development Authority (Govt. Department) in
Pakista n.
Proposition 21: Greater the use of globalization in the international context, the greater the
firm in global convergence orientation, i.e. the case of Haier (Air Conditioner) from Durables
Market in Pakistan .
Proposition 22: Greater the use of localization in the international context, the greater the
firm in international diversity orientation, i.e. the case of PEL from Durables Market in
Pakista n.
Proposition 23: Greater the use of profitability in organizational purpose setting, the greater
the firm in share holder value orientation, i.e. the case of Revo (Adam Motors Co.) from
Transportation Market in Pakistan .
Proposition 24: Greater the use of responsibility in the organizational purpose setting, the
greater the firm in stakeholder values orientation, i.e. the case of Shell-Tameer Program, and
Telenor Karo-mumkin Program.
Proposition 25: Greater the use of both logic and creativity in strategic thinking, the greater
the strategic thinking orientation of the Disprin (Reckitt and Benckiser) from Personal Care
Market in Pakistan .
Proposition 26: Greater the use of both deliberateness and emergentness in strategy formation
process, the greater the strategy formation orientation of the Rose Petal tissue papers from
Household Care Market in Pakistan .
Proposition 27: Greater the use of both revolution and evolution in strategic change proces s,
the greater the strategic change orientation of the TCS (Tranzum Courier Services) from
Logistics Market in Pakistan .
Proposition 28: Greater the use of both markets and resources at business level strateg y, the
greater the business level strategy orientation of the Sabz PVC (Plastic) of Engro Polymer
and Chemicals Ltd. in Pakistan .
Proposition 29: Greater the use of both responsiveness and synergy at corporate level
strategy, the greater the corporate level strategy orientation of the Bandial, New Khan,
Daewoo from Lahore Urban Transport System in Pakistan .
Proposition 30: Greater the use of both competition and cooperation at network level
strategy, the greater the network level strategy level orientation of the Mobile Zone, and

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United Mobile from Communication Market, and Pakistan Tobacco Company (PTC) and
Lakson Tobacco Company (LTC) from Food-Impulsive Market in Pakistan .
Proposition 31: Greater the use of both compliance and choice in the industry context, the
greater the market orientation of the small and medium factories of soap, detergent, and
cooking oil in Rahimyar Khan, Pakistan .
Proposition 32: Greater the use of both control and chaos in the organizational context, the
greater the market orientation of the Pakistan Tobacco Company .
Proposition 33: Greater the use of both globalization and localization in the international
context, the greater the market orientation of the Pepsi from Food-Drink Market in Pakistan .
Proposition 34: Greater the use of both profitability and responsibility in organizational
purpose setting, the greater the market orientation of the Sona Urea and DAP from Fertilizers
Market in Pakistan .

5. Implications and Discussions

5.1 Theoretical Implications

Both the marketing and strategy literature state that a market orientation and/or a techno logy
orientation increases the commercial performance of an innovation . This research has studied
simultaneously customer, competitive, and technological orientations and their relation to the
innovation characteristics and their commercial performance. Specifically, this research
contributes to the marketing literature on new product development by (1) considering
technological orientation in addition to the other strategic orientations discussed in previous
strategic orientation research, (2) viewing interfunctional coordina tion as a construct distinct
from market orientation, and (3) evaluating innovation characteristics as a result of the
strategic orientation of the firm and as determinants of the new product commercial
performanc e.

5.2 Managerial Implications

These propositions have direct managerial implications:
This research shows the relations between a new product's performance and the orientation of
the firm: a customer orientation, a competitor orientation, and a technology orientation .
6. Recommendations
The recommendations for the strategic orientation to emphasize are not unconditional . This
provides some guidelines regarding which strategic orientation or combination leads to
superior performance, depending on the market facing the firm. The role of interfunctional
coordination appears limited. Although it is clear that innovations are often driven by R&D,
the interface of marketing and R&D is still often problematic. The mechanisms considered in
the measure of interfunctional coordination appear to be insufficient to promote the benefits
that should be derived from the customer orientation represented by marketing department s.
Nevertheless, this research demonstrates that a customer orientation is particularly useful to
marketing an innovation in environments in which demand is uncertain. It is clear from this
study that (1) innovation radicalness and differentiation for competitive advantage are key to
the successful marketing of new products and (2) different firm orientations have different
effects, depending especially on demand uncertainirty level in the market .
7. Conclusion
This paper focuses upon the construct of strategic orientations, research propositions, and
managerial implications for the business in Pakistan, especially with reference to the brands
working in Pakistan. Firms like Telenor, Ufone, and Mobilink, are in transition period of
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learning organization, in order to increase their competitive advantage and market share. They
are focusing on customer care, effective delivery of services to their customer based on
knowledge management of customers. Large public sector organizations like civil bureaucracy,
PEPCO, PIA, and Police are not responding to the concept of learning organization yet. Their
human and material capital is under-utilized and severely threatened by wasted and losses. Due
to centralization of authority and decision making in large public sector organizations
customers complaints and services are mismanaged. Similarly employees benefits and
services also mismanaged. This is caused due to time delay and ill-efficiency in taking prompt
and effective decisions to mitigate the grievances of customers as well as employees . Here in
Pakistan, most of the organizations focus on personalized fashion, which means are being run
on the likes and dislike of bosses, CEOs, and MDs. Nepotism is also a prevailing curse in our
organizations. Organization structure is not organic and open but enmeshed with hierarchical
dominance, bureaucracy and red-tapism

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