Report On Asm Chemical 1g6231

Market Range of ASM Chemical

Strategy Market Segmentation & Market Strategy: Basic chemical products are generic in nature. In of marketing it will certainly address specific market segment. Initially ASM approaches large organizations who directly import chemicals for own consumption. Distributors are also been engaged for marketing these basic chemicals. Market Size & Growth Rate: Main participants/competitors of this market are import. To control import, initially basic chemical products are positioned in such a way that the quality will be as good as imported items and pricing will be slightly low. Once the companies will get used to enjoy the facility of local supply they will slowly migrate to local products. At that time pricing of local produced chemicals will be slightly higher than imported goods. Competitive Advantage:

Quick delivery of good quality local product of consistent standard is the essence of ASM’s marketing. End industries at this stage are import dependent. If they want to maintain quality of their work they cannot purchase chemicals from local market. In most cases quality conscious end s directly import chemicals blocking big fund. Basic chemicals production plants have substantial contribution to these customers. Industry participant and product positioning: Qualified chemical engineers and chemists are recruited for marketing basic chemical products. They visit door to door of prospective customers to educate them to use local product. Side by side, for direct sale company has distributor network to handle the products. Textile industries, pulp and paper industry, pharmaceuticals, Soap industry and some chemical industries will be our main focus. Sometimes seminars and symposium are arranged to inform the prospective customers about the product. Other than that, company prints out leaflets, pamphlets spelling out the specialty of its products.

International Marketing  ASM Chemical is a sister concern of AZIZ Group and Aziz Group used to have 2 different garment industries. With the help of that they have created a big network around the world and now to market their chemical products they are taking advantage of that network to market their product internationally. Since they already know a lot of buyers, the buyers have introduced them to new market which is another advantage of networking.  Firstly, preliminary screening is done through networking and web sites. Then, in depth screening is done which includes both the company and the country. ASM tries to find out if the company will be beneficial to them or not. They also look at the political situation of the country to find out if it is safe to do business. Once they are satisfied, communication is done through email, video conferencing and telephonic conversation. Once both parties agrees to a feasible initial contract, higher level authorities are being involved. Sometimes, they also visit prospective countries to meet with buyers.

Country Identification Preliminary Screening In Depth Screening Communication/Coutry Visit Confirm Deal

 Most popular product is Hydrogen Peroxide and India is the highest buyer of this product.  ASM Chemical also import some raw materials from India. Both countries have a healthy business relation.  Approximate production is 500 tons/month.  A total of 2 competitors that can be counted as rivals. According to the employee, ASM is the market leader at the moment.

Challenges

ASM chemical industry face a lot of challenges. Being a big company the challenges includes both local and international and these directly affects the production process. Below are the challenges they face when conducting business, due to the type of the course, our main focus will be on the International Challenges:

Local:

1. More water treatment plant to be made by WASA at different area of the country to increase liquid Cl2 consumption. Currently the number is too low which is hampering the production process as purified water is being used as one of the ingredients of chemicals. 2. Natural Gas permission from Govt. is getting difficult to attain which may hinder the production process. 3. Political unrest affected the company severely in 2013-2014 eventually affecting balance sheet. International:

1. Tariff barriers indicate taxes and duties imposed on imports. Marketers of guest countries find it difficult to earn adequate profits while selling products in the host countries. Sometimes, to prevent foreign products and/or promote domestic products, strategically tariff policies are formulated that restricts international marketing activities. Frequent change in tariff rates and variable tariff rates for various categories of products create uncertainty for traders to trade internationally. Antidumping duties levied on imports and defensive strategies create difficulty for exporters. For instance, sudden impose of Import Duty in Pakistan made ASM Chemical lower its price which was not calculated. 2. Different political systems (democracy or dictatorship), different economics systems (market economy, command economy, and mixed economy), and political instability are some of real challenges that ASM has to face. Political atmosphere in different courtiers offer opportunities or pose challenges. Governments in different nations have their priorities, philosophies, and approaches to the international trades. They may adopt restrictive (protectionist) or liberal approach to international business operations. Especially, political approaches of dominant nations have more influence in international marketing activities. Long-term trend of global political environment is unpredictable and uncertain. Economic

policies of different nations (industrial policies, fiscal policies, agricultural policies, export-import policies, etc.,) do have direct impact on international trade. Drastic change in these policies creates endless difficulties to international traders. While dealing with international markets, international political and legal environment needs a special attention for ASM Chemical Industry. 3. Every nation has its currency that is to be exchanged with currencies of other nations. Currencies are traded every day and rates are subject to change. Indian Rupee, European Dollar, US Dollar, Japanese Yen, etc., are appreciated or discounted at national and international markets against other currencies. In case of extraordinary and unexpected moves (ups and downs) in currency/exchange rates between two courtiers create serious settlement problems. Recently, due to Brexit, pound rates have fallen which could have had an impact on the business of ASM chemical.