First of all we would like to Thank ALMIGHTY, Who is the source of all our knowledge and wisdom. Then we would particularly like to thank our respected instructor Mr. Yasir Ali Somro for providing us the opportunity to look into various aspects of Marketing. His teaching is very informative and beneficial for us in future. He has been very helpful to us in making the project and in gaining further knowledge. Then thanks to our Parents, Friends and Colleagues in making of this project. Moreover we are thankful to all our group members who have coordinated and cooperated in the making of this report.
1. Company Description
The group was initiated by Sir Adamjee Haji Dawood (1880-1948) who also played a vibrant role in the birth of the state of Pakistan by acting as a financial advisor and supporter to Quaid-e-Azam Mohomed Ali Jinnah-the founding father of Pakistan. Sir Adamjee's role as advisor gave birth to various economic institutions; the Muslim Commercial Bank (MCB), Orient Airways, and the Morning Star newspaper.
These were primarily established at the behest of Quaid-e-Azam Mohomed Ali Jinnah to win support of Muslims of Pakistan and facilitate them in migration to Pakistan during the partition of India in August 1947.
Adam Motor Co., an assembler of Chinese SUVs and pickup trucks in Pakistan introduced an indigenous automobile Called the Revo. It is a 3576 mm long hatchback, powered by either a 800 cc or a 1051 cc petrol engine, sourced from Wuling in China. Otherwise the car is built from local parts. Adam Revo was a city car made by the now defunct Adam Motor Company of Pakistan. It was the first car to be designed & assembled in Pakistan. The Revo is being assembled at a plant in Karachi owned by Adam Motors. And the engine and transmission systems have come from China. The company plans to make 5,000units a year
2. Reasons of failure
There are some main causes of failure of this project:
As world is a global village now so foreign brands are easily available in the market. People tend to prefer foreign companies over local companies. If you want to grow your local automotive industry then one must first give tax leverage to this industry to protect their companies or else foreign companies would run the domestic country down to nothing.
Lack of Government support
Former Prime Minister Shaukat Aziz inaugurated Revo’s plant in 2003, Aziz promised Feroz Khan, the maker of Revo, to buy his car for the government as it was the cheapest in the country. Feroz Khan did produce suffice to cater the needs of Government who decided to buy Adam Revo instead of Mehran. The government could have easily bought 5,000-10,000 cars a year but it never fulfilled its promise and that was one of the major reasons why the project collapsed.
Lack of funds
Due to interest of Prime Minister, Feroz Khan produces enough to carter the Government. When Government never fulfilled its promise, debt pilled up then company had to go bankrupt. There weren’t enough funds left to rejuvenate this company and to pay off its debt.
Road grip of tires
Tires used were of cheap quality, bumps and surface imperfections in the road results in inevitably reduced grip on the road which leads to a harsh ride.
People didn’t like cheap Speed-o-Meter of Adam Revo, which reminds drivers of 19s car. Now days where stylish cars are easily available, people didn’t like buying car which gives them the feel of driving any vintage car so they pay extra just to have car with a bit of pizzas by paying 45-75000 extra.
Lower Quality of interior plastic
The car wasn’t good enough. The cheap plastic interior and hideous looks were not up to the expectations of the potential buyers of car, who rather preferred a used car than an Adam Revo.
No Promotions/Advertising/Marketing plan
Effective way of selling your product is to advertise it through Ads, Campaign and...
Please join StudyMode to read the full document