Interviewee: Atis Abbas Rehmani
Designation: Director
Story:
In 2009 after his A level exams he was paying his free time at his fathers office, he was under training in his office. His father runs a well known company in Pakistan named Keune. One day while surfing the internet he came through this new hair make up technology in hair make that said hair extensions 100% human hair. He got interested in the idea therefore he did some secondary research on it and also after some research he discussed it with his father.
It was a great opportunity because they did not have any competitors in Pakistan. He was passionate about becoming an entrepreneur as he was highly inspired by his father. Any how under his fathers guidance he started off with this idea and contacted the company in Netherland and after a long struggle he made a contract with them for sole import and marketing for Pakistan.
Now its been 1.5 years of his success full operations in Pakistan he is running the company and is also is studying at BNU as a business student.
1. What is the need they were trying to satisfy?
They are basically providing the solution and answers to the entire questions one asked to himself:
· I have no time for a difficult up do.
· My hair ends are not so fine.
· I want beautiful hair.
· On top it’s getting thin.
· My style doesn’t stay.
· No chemicals.
Solution:
Balmain is offering a wide range of hair extensions and fill in to all meet the need and wants of all these consumers. It has 24 colors, various textures and variety of specifications. So a proper guidance to all those people who are conscious about their beauty and glamour Balmain hair extensions are providing the best possible facility. Moreover, it’s a substitute for hair transplant which is painful and much more expensive for many people.
2. What is the potential market size?
a. This company targeted elite or high class society.
b. Considering being pioneer they had opportunity to grow in the market.
c. As far as competitors are concerned no tough competition till now but a company known as Sarah’s also produce extensions but they are of low quality ,so can’t give a tough competition as such.
d. According to BCG’S matrix it was a question mark because it had potential to grow and share’s the whole market individually, very soon it has a chance to shift to star.
e. The quality of a product is great because they use real human hair in manufacturing their product.
3. What is your market /sales channel?
There were many ways through which they marketed their product;
· Word of mouth.
· Endorsements with celebrities.
· They organized special ramp walk by renowned fashion divas.
· By direct marketing with highly recommended saloons i.e. madiha’s , duplex , new look etc.
· They also used awake materials like fashion magazines, trolleys, posters, billboards etc.
Through marketing intermediaries such as Al-Fateh they do effective marketing, by providing the knowledge of the product usage through specially trained staff.
4. What is your business model?
The business model that was narrated to us was a simple one to understand it had a system that flowed the products from the source to the end consumers. It had some important channels in turn to ensure the operations of the organization:
I. Importing the product from Netherland
II. To store the stock after its import
III. Division of tasks among the organization hierarchy
IV. Marketing and Selling to intermediaries
V. Buying of the consumer
Importing the product
First of all the product is imported from Netherland through a logistic company that helps the company to import the product and handle the legal affairs.
Storing the stock imported
After the product is imported it is stored in the ware house in Lahore. The good imported is in its finished form.
Management
Management consists of a hierarchy of people who are responsible for the smooth working of the company.
Sales representatives
They are the smallest part of the management in terms of designation. They are the people who promote and introduce the product to the intermediaries like Saloons and Resellers. They actually form the frontline management that executes the company operations and make a contact point between the company and the intermediary.
Senior Managers
They are the ones who are responsible to think marketing ideas and to ensure the proper execution of company goals and targets. They oversee and control the frontline management. Their job includes operational effectiveness and efficiency.
Directorate
This segment is basically the father of the organization and holds the decision power. They are the actually people who are running the show in the organization.
Marketing and selling
The sales representatives are responsible to take the orders of the product from the intermediaries, they then report to the senior manager who makes the product available through distributor or directly from the ware house.
Marketing includes striking the different touch points through give a way’s (like wall clocks, towels), print ads in the fashion magazines and sponsorships to different fashion events. This adds good image to the company in the minds of its consumers and also makes the intermediaries happy that is important for the selling of product, the reason being such product is primarily sold on word of mouth.
Buying of the consumer
All these steps lead us to the end consumer that buys the product and generates revenue for the company.
5. What are major show stoppers?
The majors show stoppers are
· Political instability
o The political instability of Pakistan effects a lot, internationally our reputation has been damaged that leads to insecurity in the minds of our foreign partners. It becomes hard at times to justify the effectiveness of operations in Pakistan. Also this has lead to the trend of short term investment plans instead of long term investments that is important for the consistent growth of the company.
· Pakistan law and order instability
M. Ahmad Nawaz 13-01350
Ayman Malik 13-10223
Zunaira Chaudary 13-10612
Hadia Akbar 13-10329
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