Project on

RENKER CORPORATION’S

Advertising Campaign

By
Muhammad Latif Akkas 2004-ag-4289
MBA (R) 4th Section B Roll No. 57

DEPARTMENT OF BUSINESS MANAGEMENT SCIENCES

UNIVERSITY OF AGRICULTURE, FAISALABAD
 Executive Summary

In Renker Corporation, telemarketing and media marketing relevant activities are

being done. We researched here to find out its existing strategies and new plans for its better
image in new trends. Because DRTV companies are moving towards retail and totally new
businesses.
First of all, socialization and orientation procedure of the company was completed
which helped us to achieve our objectives. Major work on which company is most anxious is
media as its all activities are media relevant so it is most important to take attention on it. Order
generation system also starts from here and then other action are performed. Distribution
department is responsible to handle inventory at all distributors and order forward system is also
performed in this department. Company also have many departments with accordance of its need
and work.
At the end we analyze the situation and make the matrixes in accordance with the
position in the industry and we finalized the strategies. If the company will follow these strategies
formulated by our group, I am assure it will get enhancement of business and new markets.

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 Acknowledgement

We have endeavored hard just to find the true reward by discussing certain
predominant prerequisites, for this educational matter. However, it is up to the critical
and analytical human eye to smell the authentic flavour by going through my worded and
visionary yell’s wish to than my touchy and learned teacher Sir Yawar Abbas whose
poses like a preacher speaks itself as all what we have presented is the guidance of his
store of knowledge providing me a sigh of solace and relief in the four walls of our
mother institution.

We have also tried to prove our assigned job as the gateway to seek knowledge
for our bright future. We think that the readers may be attracted magnetically by going
through our efforts realistically.

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 DEDICATION
WE DEDICATE THIS HUMBLE
EFFORT
TO
MY PARENTS
&
TEACHERS
WHO HAVE GREAT COTRIBUTION
IN
OUR SUCCESS.

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Introduction to

choosing the research on Advertisement

Advertisement is becoming major element of any business and flourishing business itself

as well especially in this era. As now, advertisement playing a vital role in the success of

every business sectors. It is very general thing that as much aggressive advertisement is

being done, market share is also becomes easy to capture.

As Pepsi cola, Unilever, Nestle, Engro Foods, Surf Excel, Restaurants, Beverages etc are

doing advertisement for awareness, information, reminding and selling purposes.

According to awareness and to know the now how of advertisement, I chose this project

on advertisement. In Faisalabad, else Renker Corporation, no media relevant company is

working especially in direct response from Television.

No doubt, this subject is very interesting but a lot of creativity and new ideas are essential

for advertising.

Thus, this research is conducted only for the proper awareness and to check its potential

in an effective business sectors. For this purpose, in real life organization, study is

necessary to handle this assignment.

Therefore, Renker Corporation is one media relevant organization in Faisalabad, and it is

chosen for advertising campaign.

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 Objectives of the Report

Main objectives of this report are,

1) to aware the people about advertisement

2) Classification of advertisements

3) Media choice for proper advertisement

4) Frequency and access to the media

5) Advertising Agencies types

6) Real life company’s advertisement campaign

7) Brief introduction of DRTV companies

8) Communication gap according to advertisement

9) Recommendations for better customer satisfaction

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 Introduction

A multi-national company of DRTV Marketing having distribution network in

Pakistan, India, Arab Countries etc, dealing in Home wares, Beauty, Health and Kitchen
wares. Also have a call center of international standards. Renker is a telemarketing
company and it has a world wide distribution networks. The company also has a call
center of international standard. The company deals in home wares, beauty, health and
kitchen wares.
The target market of the company is all the Pakistan. The company qualify its
customers through advertising. The main source of company promotion is television
advertising. The company hires many channels to attract customer like Ptv world,
Filmazia, TV one, Roshani, Labbaik, Indus plus, Indus vision, Business plus, Hum tv,
Apna, Aaj TV, and QTV etc. The company gives a toll free number to its customer to
approach the product. Through toll free number the customer comes in a call center. In
the call center his order has been placed. In call center the company hires customer
relation officers for customer quires. The responsibility of customer relation officers is to
place confirm orders, provide information to customer about product features and also
take care of customer complaints. The company has a distribution networks in all big
cities of Pakistan. Once a customer places an order for product, it has deliver through
distributor.
In this way the company operates its business. The company selling process starts
from the airing of the product. The customers watch the ads, he comes in call center
through toll free number, his orders will place and the product is delivered through

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distributor. Renker start its operation in 2001 with only selected resources. Amjad Ali the
managing director of the company has intended to start new business and he introduces a
company named as Renker.

Today Renker is one of the best companies of direct response T.V.

Departmentalization

1) Human Resource
2) Media
3) Designing
4) Distribution
5) Account
6) Sales
7) Call Centre
8) Business Development
9) Complaints
10) Packing
11) Administration
12) Up Sell
13) Data Base & Project Management

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 Mission Statement

“Create and maximize value and opportunity for all our

stakeholders To be the leading, innovative and dynamically growing
organization in the information technology and communication
sectors so as to: deliver superior, sustained shareholder value;
achieve total customer satisfaction; and become the employer of
choice”.

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What is advertising?

Advertising is a way to get your message to your desired audience. But in order to do
that, you must first have a plan. This plan has many facets, including your marketing
goal, advertising strategies both creative and media, implementation, evaluation, and
budget.

What is your marketing goal?

Your marketing goal is basically what you want. Do you want X amount of people to
visit your city this year or season? Do you want to increase sales an X amount? Is there a
problem you need solved, like filling rooms mid-week? Once you determine what it is
you’re looking for, you can then determine who you want to speak to and what you want
to say to them. This, then becomes your advertising strategy.

How do you build an advertising strategy?

The first four questions you want to ask yourself are:

• Who are you trying to reach?

• What do you want to say to them?
•
• How, when and where are you going to reach them?
• Why have you chosen the steps you have selected?

Who are you trying to reach?

The audience you want to reach is your target market. In order to determine your target
market, you will need to do a little research. You will want to know what the consumer
thinks about your city, resort, or product and your competition. It is extremely important
to know who your audience is, so you can create the right message for the right person.
There are several ways to discover your audience, which is detailed in the research
portion of the educational series. It may be helpful to categorize your consumer in order
to market to the correct group. Some questions to ask yourself during the research
process are:

• Location - where does your consumer live? Urban or rural environment? Out of
State? In a specific city? Far away or close by?
• Age - Is your consumer between the ages of 25-54 or 34-54? Are they younger or
older?
• Marital/Family Status - Are they married? Single? Do they have kids? How
many? What ages?
• Income - Does your consumer make $30,000 per year or $100,000?
• Life stage - At what stage of life are they? Are they newlyweds just beginning
their life together, empty nesters (children are grown and gone), retired?

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 • Travel Patterns - How many times a year do they visit and during what season?

What do you want to say?

Now that you have narrowed your target audience, you can begin the process of deciding
what it is you want the consumer to know or think about you. This is called the creative
process or strategy. While there may be many ways to position your product or service,
you should always try to appeal to the needs and wants of your target consumer, which
again you will find from your research. Once you understand their needs, you can then
create a message inviting them to visit your area or resort. Some questions you may want
to ask yourself during this process are:

• Why would the consumer visit/stay here? Is it a special event? A great deal? A
chance to relax? Lots of activities?
• What does the consumer need to know about you? A historical place? A new
place? You have something no one else has?
• What does the consumer want to do when they stay here? Research has shown
that certain people like to do similar activities. Can you put a package together
that groups these activities?
• When might they be more likely to visit?
• It is important not to focus on too many things, because then your message gets
too confusing. Pick a topic and focus on that.

Developing Your Creative Strategy

In its simplest form, your creative strategy needs three things:

• What benefit are you promising, what’s your selling proposition?

• Who are you making it to?
• Why should they believe you?

How do you reach your audience?

There are numerous options to choose from when you are deciding how to advertise.
What are your tactics? What approach do you want to use? This will become your media
strategy.

• Newspaper
• Direct Mail
• Brochures
• Coupons
• Handouts or Flyers
• Radio
• Magazines

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 • TV
• Outdoor, such as billboards
• Special promotions or packages
• Internet Marketing

The medium you choose will depend on what your target audience will see and where
they turn to for information, as well as your budget constraints. The educational series on
creating and buying media details more about planning and buying media, but here are
some of your media choices.

What are your media choices?

Television

Television is a powerful medium because it communicates with both sight and sound.
Network television, the most costly purchase, can reach up to 95 percent of the homes.
Spot television, on the other hand, enables the advertiser to hand pick a specific audience
in a specific area. By scheduling spots to air during certain times of the day or programs,
you can reach your target market in a cost efficient means.

The major disadvantage of both spot and network television is cost. Because of high
rates, many advertisers have reduced the length of their commercials from 30 seconds to
15 seconds. This practice, referred to as splitting :30s, reduces costs but severely restricts
the amount of information that can be conveyed.

Another problem with television is the likelihood of wasted coverage -- having people
outside your product's target market see the advertisement. Cable TV is another area to
consider, since ad rates are often less expensive than the prime time on major networks.
You may not be reaching as many people, but you likely have less waste since you can
pinpoint audiences very precisely.

Radio

There are seven times as many radio stations as television stations in the United States.
The major advantage of radio is that it is a segmented medium. A media buy can be
tailored to the profile of your audience. There is an immediacy to radio (visit this
weekend, attend this event) and greater flexibility to your buy.

The disadvantage of radio is that it has limited use for products that must be seen by the
audience. Another problem, not unlike TV, is the ease with which consumers can tune
out a commercial by simply switching the station. Peak radio listening time is during the
drive times (6 to 10 am and 4 to 7 pm).

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Magazine

The marketing advantage of this medium is the great number of special-interest

publications that appeal to defined segments. . In addition to the distinct audience profiles
of magazines, good color production is an advantage that allows magazines to create
strong advertising images.

While the cost of national magazines is a disadvantage, many publications publish

regional and even metro editions, which reduce the cost and wasted coverage. In addition
to cost, a limitation to magazines is their infrequency. Some magazines are only printed
on a bi-monthly basis.

Newspaper

Newspapers are an important local medium with excellent reach potential. Because of the
daily publication of most papers, you can place an ad that requires immediate action --
this weekend only, special event Saturday, call this 800 number now.

The disadvantage of newspapers is that they are rarely saved by the purchaser, so
companies are generally limited to ads that call for an immediate customer response.
Also, companies cannot depend on newspapers for good color reproduction.

Direct Mail

Direct mail allows the greatest degree of audience selectivity. By selecting names from
your own database of interested people and past visitors or buy purchasing a qualified list
from a direct mail company, you can reach an audience who is already interested in your
offering. This is an excellent reason to start your own database if you don’t already have
one. Later in this booklet, we’ll discuss the benefits, as well as how to develop and work
with a database.

Another advantage of direct mail is that you can provide complete information on your
destination or attraction, compared with that in a newspaper ad or a 30-second radio spot.

One disadvantage of direct mail is raising postal costs. Another limitation is that people
view direct mail as junk/ refuse and the challenge is to get them to open a letter.

Outdoor

The most cost-effective advertising vehicle is outdoor billboards. The visibility of this
medium is good reinforcement for products, and it is a flexible alternative. An advertiser
can buy space in the desired geographical market. It can be as specific as a certain
expressway location, or proximity to a store, for instance.

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The disadvantage to billboards is that there is not an opportunity for a lengthy message.
Also, the message is considered fleeting/ brief since the drive-by times are so often very
fast. The message has to stand out so it won’t be forgotten once the billboard is passed.

Transit

This medium includes messages on the interior and exterior of buses, subway cars and
taxis. There is a great deal of selectivity with this medium, allowing you to buy space by
neighborhood or bus route.

One disadvantage of this medium is that the heavy travel times, when the audiences are
the largest, are not conducive to reading advertising copy. As with billboards, concise
break-through messages are critical.

Internet

Advertising on the Internet is the fastest-growing media vehicle. This media vehicle has
the advantage of active reader involvement and attention -- users have the capability of
choosing different sites, and for that matter, viewing advertisements. Furthermore, the
demographic profile of Internet users is desirable to advertisers There are some
disadvantages to using this medium. With technology constantly changing, it is difficult
to completely control the user experience over time. Secondly, the return on investment is
sometimes difficult to measure. Lastly, not everyone is online.

When are you going to reach your audience?

Timing is an important aspect when placing advertising. If you place an ad too soon,
people may forget about your event. If you place an ad too late, people may already have
plans or purchased another product.

For a seasonal plan, you may want to begin running a campaign early enough to catch the
"planners" and continue running your ad in order to catch the "last-minute trip takers." By
doing this you maximize your chances of reaching your entire audience. Remember:
advertising can motivate planning and needs to do so before the customer has already
begun their planning their trip.

How do you time the advertising?

There is no correct schedule to advertise a product, but two factors should be considered.
The first is the purchase frequency -- the more frequently the product is purchased, the
less repetition is required. Second, companies need to consider the forgetting rate, the
speed at which buyers forget the brand if advertising is not seen nor heard.

There are two basic approaches to setting advertising schedules:

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Continuous schedule - Advertising of a product runs throughout the year, when demand
and seasonal factors are unimportant.

Flight schedule - Advertising is distributed unevenly throughout the year because of

seasonal demand, heavy periods of promotion, or introduction of a new product.

Who purchases the media, creates the ad, and produces the ad?

The responsibility for actually carrying out the advertising program can be handled in one
of four ways:

TYPE OF AGENCY SERVICES PROVIDED

Full-service agency Does research, selects and purchases media, develo

ad copy and produces artwork.

Limited-service agency Specializes in one aspect of creative process; usuall

provides creative production work or only buys me
space.

In-house staff Provides range of services, depending on company

needs.

Media sales representatives Often, a publication or broadcast station can assist y

with production and scheduling. There may or may
not be a charge. They can also provide you
information on their reach and recommend the best
schedule for your budget.

Tips To Get You Started

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Now that you’ve decided your goals, objectives, target audience, strategy, message, and
tactics, you can finally put your plan into action. The media section that follows will have
more detailed advice, but here are some things you’ll want to consider:

• You can call newspapers and magazines directly. Many media reps will be happy
to place your ad. Many times, they can assist you with the development of your
ad.
• Check with the Wisconsin Department of Tourism. They offer a co-op advertising
program that might fit your needs and budget.
• Look into an outside media buying company. There are numerous free-lance
media companies that will place your ad for you for a fee. Their expertise would
take the guesswork out of you media plan.
• Check with a local printing house to print flyers and brochures.
• For direct mail advertising, the Department of Tourism offers lists of people
interested in tourism in Wisconsin. Those lists are available on labels at a very
low cost to you.
• Choose an advertising agency. Small agencies will often put your plan together
for you, design your ad, and implement it. Since this requires an additional
investment in their time, it will depend on your advertising budget and specific
needs.

To install an Internet home page, visit your local university or high school. Many
computer classes teach kids how to build a home page and they are more than happy to
produce one for a local business. This service could be free t

Advertising towards Renker Corporation

Renker Corporation’s advertising nature is of direct advertisement. In Pakistan especially
Faisalabad, no company is doing this type of advertisement.
The major work which is done here is editing the advertisement. In this time, the most
power full advertisement on all TV channels including Governmental or local, is on
airing with a huge frequency and accessibility touching a strong marking share.

Direct Advertisement

In this type of advertisement, persuading to buy within a given time of period as 15-30
minutes, you would be provided extra benefits, coupons, discounts, free gifts etc.
In other words, with a specific time of periods advertisements refer to direct
advertisement as they emphasis to take a step towards in advertising response.

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In House Advertising Company

Renker Corporation is in house advertising company because it has own network,

celebrities, structure, personnel towards creativity, print media designer, matrox unit for
editing etc.
Most of the advertisements, show cultural touch to capture market share.

Leader in Direct Response TV

In this time, Renker Corporation is leading in direct response from television companies.
Sound quality, celebrities, colour combination and designing are of very high potential.
So that other companies existing in Pakistan are not of this level.
For this huge advantage, capturing the market share is mere thing for Renker
Corporation.

Main Objectives:

1. To achieve customer satisfaction.

2. Making arrangements towards achieving total quality standards.
3. To get growth through professional management.
4. To reduce the cost of production up to minimum level.
5. To control the atmosphere by installation of latest machinery.
6. To continue to improve / surpass past achievement.
7. To lead the local manufacturers.
8. To attain a good word of mouth and to make company image stronger in the local
market.
9. To achieve the higher position in Pakistan market through value added products .
10. To provide the best services to its customers.
12. To provide wide range of profitable innovative schemes in according to customer
needs.
13. To promote computer knowledge among its official.

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Main Description of Issues Regarding Advertisement

Renker Corporation’s advertisement campaign is very aggressive but some extent

towards customer satisfaction, main communication gap seen here is

1) Discounts
2) Offers
3) Understanding Problem
4) Delivery Charges
5) Quality Problem
6) Process
7) Physibility

1 Discount
It is seen that discounts mention in the advertisement, some times discounts are not given.
these reasons are that pending orders and customer is willing to have on same price.

2 Offers
It is most aggressive strategy to cover maximum market share. So offers with the actual
products are only for the specific time of period but customers insist on it. Therefore, in
advertisement, it create problem.

3 Understanding Problems
Towards understanding problem, communication gap also exists as it may be of cultural
barrier and educational problem. Thus, company must consider all these problems to
satisfy the customers and follow up in smooth and appropriate manners.

4 Delivery Charges
Mostly accruing problem is delivery charges as in the advertisement only mentioned
home delivery services but customers think it totally free. So that delivery charges
problem in making cause of cancel orders.

5 Quality Problems
As every thing base on quality but in DRTV companies, quality is major issue because on
television, it may deceive and most of the time as showing the product, this problem
accrues so aggregation element must be prevented to capture high marker share.

6 Processes

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Within the given time of period, product delivery enhance the worth of the company as in
advertisement, quick delivery is shown but in process it is neglecting and customer are
going to leave up this type of campaigns.

7 Physibility
Some times, slots of the TV channels are on aired which stock is not availability. this
thing throw a negative impact on customer’s mind and his belief towards DRTV
companies crashed.

Distribution Network
As a single integrated countrywide network, services are fully managed from end-to-end
by RENKER. Offered on an unrivaled nationwide scale, these includes quick delivery
services and wide coverage in all over the Pakistan and others countries of the world.
There are currently 14 cities in our network, which include

Karachi
Lahore
Islamabad
Peshawar
Faisalabad
Multan
Gujranawala
Jhelum
Sargodha
Bahawalpur Punjab
Bahawalpur Sindh
Sukhur
Jhang and
Quetta.

These are the cities in which we have distribution networks and from here we have
delivered orders to whole Pakistan.

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Products Offered By The RENKER

RENKER is a telemarketing company that deals in home appliances, health, beauty and

fitness. So the Renker Corporation introduces many innovative products in this category.

Following are the detail of the Renker hot products that are airing and selling at that time.

Merlin-123/ Classic

Merlin has been specially developed for food processing in seconds. For quick snacks to

gourmet-dishes! The Merlin special switch-on-touch system fulfills the latest security

standards and prevents any kind of contact with blades – just press down on the unit and

everything is done by the time you count 1-2-3! All this makes merlin an innovative and

secure kitchen helper and practical counter top machine for countless tasks! With its

sleek design and compact shape this kitchen magician will add a touch of class to any

counter top.

But don’t forget, beauty is not just skin deep! – The Merlin’s innovative design gives you

the 3-dimensional effect for fast and effective hopping and blending!! The centrifugal

spinning forces of the blades transport the contents through the sides, up to the conical

form of the container which creates a vacuum suction, bringing everything directly back

to the blades. So let the Merlin stir up a storm in your kitchen today. It is consists of

seventeen accessories.

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Doubletta

Doubletta has two non-stick pans. It has dual function. You can use two non-stick pans

separately as well as together. It is used for cooking, roasting, fry and bake. For faster

cooking, you can cook from both sides. Heat one pan and then flip the Doubletta and heat

the second pan to focus heat on the other side. Its build-in mechanism works and provides

heat from four sides. Heat circulates all over. Heat penetrates into food evenly in

Doubletta. Your food is ready within shorter period of time. To bake food on steam,

steam try is also there. Keep food on this tray. Put this tray between non-stick pans and

start cooking. Enjoy fast foods. It is ideal for omelets, vegetables, chicken tandoori,

chapel kabaab, beef and shashlik.

Super Vacuum

Super Vac plus, a powerful hand-held vacuum cleaner, lets you to clean your carpets,

house holds, furniture and vehicle interiors, and even narrow spaces. The blend of 600

watt motor and 11 accessories facilitates you limitless cleaning options.

Attach the extension hose and the handy carry strap and it’s transformed into an upright

cleaner that is great for covering large spaces of floor. No need for bags, super Vac plus

is so easy to empty. A light weight hand-held and powerful upright – all in one amazing

machine, the RENKER super Vac plus.

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O2lean

O2lean is a herbal supplement that reduce weights. O2lean is advance formula works on

the bases that reduce weight giving energetic body. Get slim and powerful body with

o2lean. O2lean is only weight loss program university tested for proven results.

Scientifically proven to decrease both intra abdominal and subcutaneous body fat. O2lean

is ideal for weight from 5kg to 50kg and increase energy levels. It is suitable for men and

women for all ages with out any side effects. It has guaranteed weight loss.

Halogen oven

Cook quickly, healthily and easily with the portable halogen oven. RENKER halogen

oven has a powerful fan that distributes heat quickly and evenly, ensuring perfect cooking

every time. And any fat produced simply drains away, making every meal healthy meal.

And if this isn’t enough, the halogen oven has a self-cleaning - so no washing up!

Scientifically proven to cook much faster than a conventional oven. Glass body allows

you to see your food as it is cooking, helping you to cook to perfection.

Includes 2 racks - allowing you to cook on two levels at once - and some handy tongs.

VigRX

Vigrx, a carefully calibrated supplement for men’s full sexual health, penis enhancement

and peak performance. This provides proper erection while erectile dysfunction. VigRX

combines:

• Centuries of herbal and naturopathic wisdom.

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 • Modern testing and research.

• Breakthrough encapsulation technique.

• Laboratory-controlled potency.

• Doctor-approved, carefully calibrated formula.

What it brings to you

• VigRX is a course based herbal supplement.

• No side affects at all.

• Enlargement to your penis.

• Proper penis erection.

• Hard sexual drive.

• Escape from improper ejaculation.

• Even can be used for activity.

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 SWOT Analysis
Strengths
Competitive Management
Upper management of RENKER is highly qualified and experienced in the field of
telemarketing.
Latest Technology
Company is equipped with latest New Technology.
Wide Product range
We have lots of Value added products which are not having others.
Adequate Financial Recourses
Due to good repute and excessive growth RENKER can get Finance from Financial institutes or
investors to meet the requirement.
Good Competitive Skills
RENKER has good competitive skills they know how to compete in the Competitive markets of
Asia.
An Acknowledged Market Leader:
It provide good working environment to its employees so they work effectively
Product Innovation Ability
RENKER has ability, skill and technology for the product innovation.
Well-Convinced Functional Area Strategies:
RENKER has adopted best strategies in functional areas that are why it is successful among its
competitors.
Powerful advertising:
RENKER has hire many channel for advertising.
Creative and attractive ads:
RENKER has made creative and powerful ads to attract customers.
Quality products:
RENKER has selling quality products to its customers.
Money back guarantee:
RENKER has gives money to its customers. Its means that if customers are not satisfied their
money has been returned.
Home delivery services:
RENKER has provides home delivery services to its customers all over the Pakistan.

Weaknesses:
Weak market image:
Although RENKER is well established and growing firm but it has weak market image because
it fails to present its activities to the customer successfully due to some bad channels.
Lack of Motivation in Employees:
Workers especially lower level workers are not satisfied or motivated because they are not
trained to meet with changing requirements of their work. Lack of rewards is also one of the
reasons of dissatisfaction.
Pledge with Internal operating Problems:

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 RENKER is pledged with various Internal Problems such as lack of communication among
abilities in employees, work load etc.
Falling behind in R&D:
RENKER is ignoring the need of a strong research and development department.
Poor Track Record in Implementing Strategy:
RENKER is facing a lack of skills necessary for implementing strategies so it fails to achieve its
objectives truly.
Slow delivery services:
RENKER is slow delivery services in some areas of Pakistan .

Opportunities:
Added Product Line:
It has opportunity to offer new products to cover more range of market of market segmentation
because in Faisalabad, Lahore and Karachi they have good market potential.
Faster Market Growth:
Company can achieve faster market growth by expanding its operations, reducing cost and
maximizing profits.
Entry in New Markets or Segments:
RENKER has opportunity to enter in new markets
Ability to move in better Strategic Group:
RENKER have a option to capture the Market of Pakistan due to some special packages.

Threats:
Adverse Government Policies:
Government policies can be a hurdle in the operations of the company such as PIMRA policy &
PTCL Policies.
Adverse Demographic Change:
Political environmental market trends, economical and other demographical changes can
become a threat for RENKER.
Growing Competitive pressure:
Competition is growing day by day and this growing competition due to globalization has
become a threat for companies.
Likely Entry of new competitors:
New competitors are entering in the market and absorbing the share of existing companies, this
is a big threat for companies to survive.
Changing Customers needs:
Customer needs are changing day by day and its very necessary for the firms to comply with
their need to exist in the market.
Vulnerability to Recession & Business Cycle:
Recession period for firms is a big threat. It is the period when firms went into loss so firms should
have strategies to avoid these threats and convert them into opportunities.

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PEST Analysis:
Every nation has unique features that must be understood. A nation’s readiness for different
products and services depends on its Situation/PEST analysis. PEST analysis is a method that helps
the manager to identify the nation’s, Political (P), Economic (E), Social (S), and Technological
(T).

Political:
The political risk is a major factor, which effect the over all business performance. The political
condition of our country is not satisfactory. Every government has its own policies. Every
government delete the polices of previous Government also is trying to implement new tax policies
and other regulation to encourage the economy. When the political environment is not satisfactory,
the foreign investors would not like to come and make investment due to which foreign investment
would go down. So govt. should implement policies, which are benefited for local as well as foreign
investors.

Economics:
RENKER operating its business in present economy. The economic condition of this country is not
up to mark. Heavy loans and increasing inflation rate make the business environment strict.
Increasing inflation rate cause of production due to which our countries products well out at a high
prices with low margin. But RENKER sale is increasing year by year the company has overcome
any difficulty which arises through economic hindrances by are some economic obstacles e.g.
balances community in the country.

Social:
In this environment, many processes can effect the organization like attitudes, values behavior and
beliefs of people living in different areas. RENKER is producing its products according to the
varying demands and charging life style. So RENKER examine the consumers indifferent countries
think about and use certain products before planning making good efforts in producing those
products. This matches the customer liking and buyers demand.

Technological:
Technical achievement is very important tool to produce quality product RENKER has imported
machinery and equipment that is sufficient for meeting the customer changing demands. The
development and application of advanced technology help this organization to compete in the global
market place. The RENKER has injected funds to enhance the value added operations and also to
modernize the existing production facilities to compete in the international market.

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 SWOT Matrix
Renker Corporation

SO Strategies WO Strategies
S1: (SI, S3, S5, S9 W1, T2) S2: (S1, S2, S4, S8, W3, T3, T2)
Critical Region

ST Strategies WT Strategies
S3: (S1. S3, S4, S5) S4: (W5, W4, T1, T4)

Suggested Strategies to Capture Market

• S1: Expand into new markets.
• S2: Market integration.
• S3: Maintain Low Price Strategy.
• S4: Focus on the Public Relations Managements and redesign the purchasing practices.

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Findings & Recommendations

After the brief and complete study of Renker Corporation’s advertisement strategies, some
recommendation according to customer follows up.

1) Ads should be in low context

2) Ads should be according to income power of Pakistani cultural
3) Answerless elements must be avoided
4) The showed products must be delivered accordingly
5) Company should start its advertisement in print media on urgent bases
6) Complaints must be solved as like orders
7) Compensation structure is also is not good. a proper consideration should be there
8) incentives programmes should be for all employees even managers
9) Work place stress should be minimized

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