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Internship Report on AC Nielsen Aftab Associatetle 2009 |
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We are the producers of quality reports for your business. Specific area of your business. Any unknown problem that you may face in your organization but you don't know about that. Our consultancy will boost up your business it is guaranteed. TABLE OF CONTENTS PART ONE A VNU Company ……………………………………………………………….…….1 VNU Introduction and History ………………………………………………………..3 AFTAB Associates Limited Introduction and History …………………………………………………….13 Studies Conducted by AAL …………………………………………………………15 A Brief Overview of ACNielsen …………………………………………………….21 Objective of ACNielsen ……………………………………………………………..33 Present Status of ACNielsen ………………………………………………………...34 ACNielsen AFTAB Mission Statement……………………………………………...40 Relevant Experience ………………………………………………………………45 ESMORE ……………………………………………………………………….50 Gallup Pakistan ……………………………………………………………52 SB & B Marketing ……………………………………………………………...53 SMAR International ……………………………………………………………….…55 MCP …………………………………………………………………………….……57 Comparison of ACNielsen AFTAB with Competitors ………………………….…...58 PART TWO Policy Formulation …………………………………………………………………..61 Major Managerial Policies …………………………………………………………..65 PART THREE Managerial Style …………………………………………………………………….71 Organizational Management Design ……………………………………….………..91 ACNielsen AFTAB Project Oriented Company …………………………….………92 Working Infrastructure of ACNielsen AFTAB …………………………….………..96 PART FOUR ACNielsen AFTAB (Production) …………………………………………………..100 Quantitative Research ………………………………………………………100 Qualitative Research ………………………………………………………..102 Retail Measurement Services ………………………………………….……102 Production Facility at ACNielsen AFTAB ………………………………..………...104 Personnel department Administration department PART FIVE Marketing Mix of ACNielsen AFTAB……………………………………………...107 Product ……………………………………………………………………………...108 Retail Measurement Services……………………………………………….108 Quantitative Research……………………………………………………….109 Qualitative Research ………………………………………………………..110 Ongoing Survey …………………………………………………………….110 Price ……���………………���……………………………………………………...122 Place ………………………………………………………………………….……..124 Promotion …………………………………………………………………….……..127 PART SIX Forward to Financial Analysis ……………………………………………………..129 Ratio Analysis……. ………………………………………………………………..134 Liquidity Ratios …………………………………………………………….134 Leverage Ratios …………………………………………………………….137 Income Statement and Income Statement / Balance Sheet Ratios Coverage Ratio ……………………………………………………………..140 Activity Ratio ………………………………………………………………141 Profitability Ratio …………………………………………………………..144 Du Pont Approach ………………………………………………………….145 Common Size Analysis …………………………………………………………….147 Index Analysis ……………………………………………………………………...151 PART SEVEN My Learning ………………………………………………………………………..178 Research Process……………………………………………………………………179 Visit to different department………………………………………………………..192 PART EIGHT SWOT Analysis ……………………………………………………………………198 Recommendations ………………………………………………………………….200
A VNU COMPANY A Leading Media And Information Company Since 1964, VNU has expanded from a Dutch publishing firm into a major international media and information company. VNU provides millions of people around the world with business and professional intelligence. We hold a leading market position and recognized brands in Marketing Information (ACNielsen market data), Media Measurement & Information (such as TV ratings and advertising expenditure measurement), Business Information (trade magazines and shows) and Directories ('yellow' pages and telephone books) VNU is a global leader in market research, providing measurement and analysis of marketplace dynamics, consumer behavior as well as audience measurement. In the United States and Europe, VNU publishes leading business magazines for various businesses segments, operates Internet services, and organizes conferences and trade shows. Our directory businesses are active in seven national markets, in which we publish business and residential directories in print and electronic formats. Over the last years, VNU repositioned its portfolio drastically. Doing this, VNU focused on international expansion in business information. Major players in the media and information business were added to the company: World Directories in 1998, Nielsen Media Research in 1999 and ACNielsen in 2001. As part of this repositioning process VNU sold its newspaper, consumer magazine and educational publishing activities. Nowadays VNU is a global player with operations in over one hundred countries, employing approximately 38,000 people. Around half of our EUR 4.3 billion revenues are generated in North America. VNU offers Marketing Information, Media Measurement Information, Business Information and Directory Information. By means of thousands of specific market data reports, 140 trade magazines, 150 trade shows and business events, 165 'yellow pages' directories and many Internet sites, VNU provides millions of professionals around the globe with knowledge and business intelligence.
INTRODUCTION & HISTORY (VNU) A new global leader in Marketing and Media Information has emerged from ACNielsen’s union with VNU. The US$ 2.3 billion merger became effective on 16th of February 2001. In Marketing Information, ACNielsen’s proven global strengths in retail measurement and consumer insights will be enhanced by VNU’s precision-marketing services. VNU is a public company whose shares are listed on the Euronext Amsterdam. The company is based in Haarlem, The Netherlands. VNU has the leading market positions in Marketing and Media Information, Directories and Consumer Information, as well as Educational Information. VNU also offers other marketing information services tailored to non-CPG industries such as pharmaceuticals, financial services and telecommunications. VNU is a global leader in market research, providing measurement and analysis of Marketplace Dynamics, Consumer Behavior as well as Audience Measurement. By means of thousands of specific market data reports, 140 trade magazines, 150 trade shows and business events, 165 'yellow pages' directories and many Internet sites, VNU provides millions of professionals around the globe with knowledge and business intelligence. In the United States and Europe, it publishes leading business magazines for various businesses segments, operates Internet services, and organizes conferences and trade shows. VNU’s directory business is active in seven national markets, in which it publishes business and residential directories in print and electronic formats. ⋆ VNU was founded in 1964 through the merger of two Dutch publishing companies.⋆ In the 1960's, the primary operations were publishing, printing and distributing consumer magazines, newspapers and books in The Netherlands and Belgium.⋆ During the 1970's, trade magazines were added to the company's publications.⋆ In the 1980's, this activity was strengthened by expansion into other European countries and the United States. VNU discontinued the book publication activities in these years.⋆ In the 1990's the strategic decision was made to move forward as a publishing company only. The printing activities were discontinued, and VNU carried on as a content provider.⋆ In 1998 VNU acquired World Directories and became an operator of telephone directories and information services on three continents.⋆ In 1999 the company made a big leap into marketing information, by acquiring the American company Nielsen Media Research (TV audience ratings).⋆ Early 2000, VNU sold its newspapers. The business information activities were strengthened in the same year with the acquisition of Miller Freeman USA (trade shows and business publications), that made VNU the second largest trade show organizer in the US.⋆ In the beginning of 2001, VNU took over ACNielsen Corporation, and thus became world market leader in information on fast-moving consumer goods purchases. The Consumer Information and Educational Information activities were sold later that year.Since 1964, VNU has expanded from a Dutch publishing firm into a major international media and information company. VNU provides millions of people around the world with business and professional intelligence. Over the last years, VNU repositioned its portfolio drastically. Doing this, it focused on international expansion in business information. Major players in the media and information business were added to the company: World Directories in 1998, Nielsen Media Research in 1999 and ACNielsen in 2001. As part of this repositioning process VNU sold its newspaper, consumer magazine and educational publishing activities. Nowadays VNU is a global player with operations in over one hundred countries, employing approximately 38,000 people. Around half of VNU’s EUR 4.3 billion revenues are generated in North America. As an international media and information company we hold a leading market position and recognized brands in marketing information, media measurement and information, business information and directories. VNU is a leader in market research, providing measurement and analysis of marketplace dynamics, consumer behavior as well as audience measurement. In the United States and Europe, VNU publishes magazines for various businesses segments, operates Internet services, and organizes conferences and trade shows. Our directory businesses are active in seven national markets, in which we publish business and residential directories in print and electronic formats. Around half of our EUR 4.3 billion revenues are generated in North America. VNU nv is a public company whose shares are listed on the Euro next Amsterdam. Corporate headquarters is located in Haarlem the Netherlands.
MARKETING INFORMATION ACNielsen, since February 2001 part of VNU’s marketing information group, collects, analyze and interprets at on consumer attitudes and purchasing behavior. We are global leader in this field. This comprehensive research does not only deals with what and how much the consumer buys and where he does it, but especially what his buying motives are. Questions such as “why dose a certain brand seller better than other” and how will the consumer reacts to a change in pricing? How do I best display products in stores? And what is the effect of an advertising campaign on the product sales. Are researches and analyzed. ACNielsen provides its clients with in depth insight about market place dynamics, so they can more effectively target their marketing and sales programs. Users of this marketing information include manufactures and retailers of fast moving consumer goods, telecommunication companies, financial institutions, and travel organizations and the automotive, computer and utilities industries. Our various marketing information companies are working together more and more to analyze, integrate and provide Geo-demographic data, precision marketing tools and consumer profiles based upon lifestyle data. The databases of Claritas in the United States provide data, which is based upon population research. With that aid of this information, profiles are composed of population groups, which are classified into states, cities and postal code districts. These consumer profiles are used for precision marketing actions. Claritas Europe provides direct mail data, which are classified according to lifestyle and household composition of the population. With this information, the company’s clients can direct their advertising and marketing activities very precisely. Spectra marketing systems provides software’s and data which manufactures and retailers can segment their customer groups and tie this to shop types and locations in order to optimize their distribution network or product assortment. Trade dimensions pride specific information not manufactures of packages goods, retail chains and real estate developers about the infrastructure of the retail trade segment. In the healthcare sector, Solucient is a major provider of marketing information. This company supplies information about healthcare, including for example, the purchase, the use of the effect of medicines and the demand for and supply of medical services. Clients include hospitals, insurance companies and other pharmaceutical industries. MEDIA MEASUREMENT AND INFORMATION How many people are watching a certain popular commercial? Which group of consumers is using the Internet everyday, through random sampling, advance research and survey methods as well as state of the art technology, VNU delivers this information. Our subsidiary Nielsen media research registers and analyzes audience measurement figures in 30 countries. The all important television ratings are collected and transmitted daily by means of so called meters. These electronic registration devices have been installed in thousands of households. The meters do not only register which specific television station is being watched, but also identify which family member is watching that program. The television audience measurement figures are of vital importance to television and radio stations, cable televisions and satellite networks, television producers, advertisers, advertising agencies, media planner and publishers for buying and planning television programs and the determination of advertising rates. Increasingly, our clients need this detailed information about market segments, because the television audience market fragments by the abundance of stations and channels. Likewise, the need for information about the usage of the Internet has grown with net ratings we measure the Internet usage around the worlds. Our total package of products and services, which measure the usage of various media, has been grouped in the VNU media measurement and information operation. VNU is also a global market leader in this segment, in addition to television ratings, we measure which newspapers and magazines people read, which motion pictures they watch, and which compact discs and videos they are buying. Advertising expenditure measurements is also an important business segment of this group in 28 countries. VNU companies active in this segment are Nielsen media research, interactive market systems and PERQ/HCI research. SRDS provides detailed information about advertising rates, circulation numbers and other relevant media information. Scarborough research provides consumer profiles for 75 regions in the United States, which are based upon analyses about purchase behavior, product use, and media use, lifestyle and family competition. BUSINESS INFORMATION VNU is one of the largest providers of integrated business-to-business information in the United States and Europe. We service our clients through three channels: printed trade magazines and annual directories, online business information as well as information through direct personal contacts at trade shows, exhibitions and conferences. With this rich supply of content, we perform an intermediary role between readers and users on the one hand and advertisers and manufactures on the other. The trade show is an effective transactional meeting place for manufacturer and buyer. Since the acquisition of miller freeman USA in 2000, VNU has become one of the largest Organizers of trade shows in key market segments in the United States and Brazil. In the United States, these activities have been accommodated at VNU expositions; VNU business publications USA and VNU eMedia are the other parts of the business information group in this region. In Europe, VNU services the business market with an integrated package of trade magazines, trade shows and electronic publication. The business information group in Europe publishers of IT segments; we publish magazines in Europe in segments such as management, finance, recruitment, media and technology. In the United Kingdom, the Netherlands and Italy, VNU organizes trade shows retailing to the above mentioned business segments DIRECTORIES VNU world directories have more than 30 years of experience in directory publishing in seven national markets we produce over 165 directories in nine languages, with circulation of over 40 million copies. Our products are telephone directories, professional and business directories and we provide information services on the Internet, telephone and CD-Rom. The group has invested heavily on our brands, databases, publishing systems and people, particularly the sales forces. They have become the real assets of the company. The internationally recognizable features of the products, such as the yellow pages, the unique brands and the logos have created an enormous impact and awareness and product position that are “first in class”. With strong brands such as Golden pages, Gouden Gids, pages D’O and Paginas Americas and an extensive sales and marketing network, VNU world directories is a leading company in Belgium, the Netherlands, Portugal, Ireland, Romania, Puerto Rico and South Africa. With the exception of the Netherlands, the telephone directories and yellow pages are operated in cooperation with the national telecommunication companies. These directories make the suppliers market transparent and are an important mutual link between companies as well as between companies and consumers. The directories have direct influence on the purchasing behavior of clients. Every year, the great majority of all companies renew their advertising contracts. Data carriers such as the Internet, mobile telephone and CD Rom promote the use of the directories; Internet plays a key role in this process. The electronic directories, provide additional information, new search techniques, multi-language versions, maps and routs descriptions. The number of advertisers on the Internet is growing each year. In addition, we design and host websites and virtual shops for small and medium sized companies. VNU AND SOCIETY VNU strives to do business in an ethical and responsible manner. To make this possible, it is important hat every employee will be able to make the right decisions and to act in accordance with VNU values and principles. Recently, business principles have been formulated to achieve this. These principles deal with eight topics: integrity in all aspects of doing business, privacy and confidentiality of information, openness in communication, VNU’s efforts to create shareholder value, our belief in the fundamental right of each individual, adequate labor conditions, the environment and our role within society. VNU endorses the principle that companies, in addition to an economic responsibility, also have social responsibility. For the reason, investments in the community play an important role in VNU’s policy. VNU supports a number of social initiatives in countries where it conducts business. The donation budget is allotted to projects, which promote the development of people through information. These projects vary from contributions to primary schools education for orphans, support for the establishment and maintenance of school libraries, computer education for young men and women. Similarly, projects, which provide dissemination of social information via the Internet, and support for medical research. In addition, VNU’s subsidiaries are involved in the local community in different ways. WORKING FOR VNU Information services are a people business. For that reason VNU devotes a great deal of attention to the people who are constantly working on the composition of our products, tailor made marketing information trade magazines, trade show, internet sites and telephone directories. As said, VNU employs approximately 38000 people in over 100 countries. Our wide and multifaceted range of products and services demands specialized men and woman for a great diversity of disciplines. They range from specialists in the field of information and communication, market researchers, marketing experts and advertising sales representatives to journalists, designers, photographers, business specialists and economists. Still, throughout the whole, all these VNU people have certain things in common entrepreneurial attitude form example. No business moves as fast as the information businesses that we are active in. this requires a focus on news and innovation. The same goes, for the creativity to cope with business dynamics. That’s why hands on management are found throughout all VNU companies. Another distinguishing characteristic is the pride that people at VNU have for their products and services.
AFTAB ASSOCIATES LIMITED & HISTORY AFTAB Associates founded in 1983, has come a long way since its establishment 18 years ago, was one of the largest marketing research companies of Pakistan. Mr. AFTAB Ahmad was the founder of this company. He did his MBA from IBA Karachi. He started this work with his friend at Karachi first and gradually he sifted to Lahore. He was the Chief Executive of AFTAB associate being the Chief Executive he stressed the need for appropriate research in projects assignments, interaction with the industry and use of proper sampling and evaluation of problems. Rural Retailers Census AFTAB Associates became the pioneer of Retail Audit in Pakistan when they introduced this research technique in the country in 1988, with the help of a Multinational consumer product manufacturing company and with technical input from a foreign consultant. Since then, AAL was carrying out Retail Audit for a number of multinational and large national clients. So far, only an urban Retail Audit service was being provided. However, AAL planned to start rural Retail Audit once the rural retailer’s census by end 1998. AFTAB Associates conducted a census of about 20,000 villages between May 1997 and August 1998. All the Four Provinces of Pakistan including Azad Jammu and Kashmir were covered in this survey. The census encompassed all FMCG selling outlets catering to the day-to-day needs of the target rural population. Rural markets have always attracted manufactures and retailers since a major portion of Pakistan’s population (65%) resides there. Information was needed on product availability, product sale, top most selling brands, customer profile, shop type and size, village profile etc. AAL had gathered all the information that is beneficial to various marketing and distribution needs. The cost of that census was very economical and information is available now for any particular province or district. Urban Retailers Census In 1991, AAL decided to conduct a retailer’s census in urban Pakistan. Approximately, there are 136,000 retailers in 381 urban cities/ towns of country. Based on this comprehensive universe of retail outlets, a new shop panel was evolved with the technical help of an international retail audit consultant who was provided similar consultancy services in various countries (both in east and west) of the world. The purpose of involving an international consultant was not only to select a truly representative panel of retailers but also to overhaul and improve the total retail audit methodology and out put in order to make AAL’s retail audit as close to the international standard as possible contacted the consultant again in 1996 to further find tune its retail audit operation. In 1998, urban retailers census was also being updated so that AAL retail audit panel was in line with the changes in the overall retail audit. Taylor Nelson AGB Acquires Sofres Groups Peter Tan, an international consultant in marketing research was invited to Pakistan by AAL. Mr. Tan helped AAL in establishing a Television Audience Measurement System based on a diary panel. He worked for the world-renowned Research Group Taylor Nelsen Sofres Taylor Nelsen AGB plc, one of the top ten companies in the EU, acquired Sofres group in December 1997, becoming Taylor Nelson Sofres. TN AGB had world revenues of 138 million EURO, which if added to those from the Sofres group, total 483 million dollar, putting the combined group at the forth place in the EU.25 groups controlled more than 60% of world wide research spending at the end of 1997. Foreign Trips In 1997, members of AAL team went to UK, UAE and India to study how marketing research is being implemented in these economies. AFTAB Ahmad visited Philippines and Hong Kong in December 1997, to attend ESOMAR conference and met key people in international research organization Studies Conducted by AAL AFTAB Associates conducted a study on “Social attitudes of Pakistanis” for the News March 1997. The study covered 1826 respondents in 16 urban cities. Some pertinent and interesting issues emerged from the survey. The findings were published in the form of a booklet in September 1997. Since mid 1997, AAL conducted an exclusive Retail Audit for Pakistan Tobacco Company LTD, which covers major urban markets, across the four provinces. The shop panel for that audit was different from the original AAL panel. Consumer research department conducted interviews in the year 1997, in about 15 cities and 150 villages. Twenty-four thousand interviews were conducted in ongoing consumer studies. Moreover, 15 central location tests were done in the same year. Qualitative research at AAL had gone considerably over the years. AAL conducted almost one focus group on every working day during 1997. AAL made an effort to benefit from foreign technology, and other advancements in qualitative research. Utilizing this opportunity she met the experts from several international research agencies like BMRB, research international, context research and HPI group, and came back with lots of new learning. Establishment Survey, SES &Media Habits Survey The role of establishment survey, SES & Media habits survey in marketing research is pivotal. Income classification and related information currently available through Government statistics have been found inadequate for marketing requirements of multinationals, international organizations and local business community. Hence, Pakistan Advertisers Society (PAS) invited proposals to conduct the above surveys for the first time in Pakistan. AAL covered only the urban population for its SES survey in the first phase. Its main objective was to draw a profile of urban population and assign ratios/ numbers to various strata/segments. Income was not the only criteria used in this survey. A hybrid “matrix” of two or more demographic variables such as education, occupation etc helped the Advertisers in understanding their market better. ⋆ As a major part of this exercise, the establishment survey determined penetration of various durables in households such as TVs, VCRs, Dish, and Cars etc.⋆ The Media Habits survey was being conducted with around 20,000 respondents in urban Pakistan.⋆ Leading 116 cities across all the Four Provinces were covered in this survey.⋆ Consumption of fast moving consumer goods.⋆ Household size and structure.Similarly, exposure to electronic media provided the most scientific basis for rationalizing the advertising spent by Media planners. On November 5, 1998 at Pearl Continental Hotel, Karachi, AFTAB Associates organized a seminar on Establishment/ Media habit survey in collaboration with PAS. On June 3, 1999, a press conference was arranged by PAS at Sheraton Hotel. The press conference was covered by almost all the major English /Urdu dailies and marketing magazines. ABN AMRO bank, Coca-Cola Export Corporation, ICI Pakistan, Habib Oils Mills Pvt LTD, Friday Times, Faysal Bank LTD etc purchased a copy of Establishment and Media Habits Survey Report.
Human Resource Development At AAL Personnel are the most important resource of any organization and its success largely depends on how well its employees are performing. Keeping in view the importance of skill development, technical presentations on different topics relating to marketing research were being arranged twice a month at AAL. Moreover, to enhance the Quality of research design and analysis, regular brainstorming sessions were in practice for each and every research proposal/project. Establishment Survey & Developing the Socio-Economic Status of Population A significant landmark in the research industry was achieved when PAS interested AFTAB Associates with carrying out the first ever establishment and SES study in Pakistan. These were the necessary Pre- requisites for setting up an efficient media research and the Television audience measurement system. In addition to establishing the data base on household structure, ownership of durables, exposure to media etc, the study provided extremely useful data on profiling of the general population. Media and Health Care Research With the increase in the choice of media, Advertisers would like to know which medium or combination of media would give them the best return on their advertising spends. To help advertisers made this decision AAL had set-up a separate division to handle media research. That division handled all research requirements of pharmaceutical and other heath care companies. Admark (The Subsidiary Company) AAL had expended its portfolio of services by establishing a subsidiary Company by the name of AAL direct marketing (Pvt) Ltd (Admark). Admark commenced its operation in June 1997. This new company in addition to undertaking all types of direct marketing activities also handled field work for the parent company, i.e., AAL. Admark had an elaborate field’s set-up comprising of over 50 permanent, experienced people, capable of handling large-scale operations. Moreover, on an average more than 300 people were hired on an ad hoc basis to cater to various tasks. Admark, immediately after its establishment had undertaken the largest direct marketing operation in Pakistan. In that project 2.1 million households were covered in seven major Cites of Pakistan, using approximately a field staff over 500 persons Opinion of Opinion Leaders In addition to usual social research topics like family planning, health and hygiene, women and child rights etc, social research wing of business-to-business department completed two surveys among opinion leaders in collaboration with eminent foreign clients. Respondents included parliamentarians, top bureaucrats, lawyers, scientific and academic community members, print and electronic media members and business community leaders. The State of the State On the golden jubilee of Pakistan, AFTAB Associates conducted a study to find out social and political attitudes of three Pakistani generations for “The News’’ in March 1997. The study covered 1826 respondents in 16 cities in al four provinces. Some pertinent and interesting issues emerged from the survey.
COMPLETED PROJECTS Since 1983, AAL has completed around 2000 research projects. This large number of completed projects, in a period of 18 years (1983-2001), shows a great confidence of Clients in AAL’s work. Some of the projects completed by AFTAB Associates are given below: 1. Activated Carbon Cigarette Lighters 2. Activated Clays Coal Briquettes 3. Ads Pre & Post Testing 4. Agricultural Implements 5. Condoms 6. Agricultural Machinery 7. Confectionery 8. Cooking Oil 9. Corn Flour 10. Cosmetics Products 11. Cotton Ginning 12. Cough Syrups and Tablets 13. Antiseptic Soap 14. Cycle, Tyres and Tubes 15. Baby Cereals 16. Dairy Farming 17. Deep Freezer 18. Baby Soap 19. Bakery Products 20. Ball Points Pens 21. Biscuits & Wafers 22. Breast Feeding Products 23. Cable and Wire 24. Fertilizers 25. Detergents 26. De Beers 27. Dish Washing Liquids 28. Electric Motors and Comp. 29. Family Planning 30. Canvas Shoes 31. Cement 32. Chip Board 33. Cigarette Industry 34. Woollen Rugs 35. Women NGO’s 36. Social Marketing 37. Radio Listener ship Habits 38. Mobile Phone Batteries 39. Philips Equipment 40. Vegetable Ghee 41. Wall Paper 42. Surgical Equipment 43. Talcum Powder 44. Sweets 45. Tea Industry 46. Yoghurt 47. Wheat Straw 48. Foot wear 49. Fruit Juice Powder 50. Fruit Juices 51. Garments 52. Mineral Water 53. Motor Cycles 54. Newspaper Readership 55. Paper and Board 56. Industrial Chemicals 57. Personal care Products 58. Infant Powder Milk 59. Pharmaceuticals 60. Glucose 61. Jellies 62. Joshanda 63. Ketchups 64. Plastic Bottles 65. Plastic Pipes 66. Lassi (Packed) 67. Laundry Soap 68. Liquid Soap 69. Polyethylene Bags 70. Population Welfares 71. Potato Chips 72. Prickly Heat Powder 73. Puddings 74. Shampoos 75. Shaving Cream 76. Shaving Habits 77. Shoe Polishes 78. Skin Care Products 79. Soft Drinks 80. Refrigerators 81. Restaurants & Hotel 82. Packed Salt 83. Packed Salt 84. Telecommunication 85. Telephone Exchange 86. Textile Spinning 87. Toilet Soaps 88. Tooth Paste 89. Spare Parts (Automobile) 90. Steel Furniture 91. Steel Products 92. Packed Sugar 93. Sugar Mills
A BRIEF OVERVIEW OF ACNIELSEN ACNielsen, a VNU company, has 21,000 employees worldwide and is the world's leading market research firm, offering measurement and analysis of marketplace dynamics, consumer attitudes and behavior, and new and traditional media in more than 100 countries. ACNielsen's clients include leading consumer product manufacturers and retailers, service firms, media and entertainment companies and the Internet community. ACNielsen at a Glance Retail Measurement Retail measurement provides continuous tracking of consumer purchases at the point of sale through scanning technology and in-store audits. Clients receive detailed information on actual purchases, market shares, distribution, pricing, and merchandising and promotional activities available in more than 80 countries. For the worldwide motion-picture industry, ACNielsen EDI provides continuous tracking of box-office receipts from more than 45,000 movie screens in 11 countries. Clients of Principal Brands ⋆ Primarily manufacturers and retailers of fast-moving consumer goods (FMCG)⋆ Non-FMCG industries such as athletic footwear, computers, toys and videos⋆ In the entertainment industry, motion-picture studios, distributors and exhibitors⋆ SCANTRACK scanning-based retail measurement services⋆ Market Track dual audit/ scanning retail measurement services⋆ ACNielsen Market Decisions Merchandising Audit Service⋆ SPACEMAN merchandising servicesINF-ACT Workstation and related decision-support services Consumer Panel Consumer panel services provide detailed information on actual purchases made by household members, as well as their retail shopping patterns and demographic profiles covers 126,000 households in 18 countries. Clients of Principal Brands ⋆ Primarily manufacturers and retailers of fast-moving consumer goods⋆ Non-FMCG industries such as computers, videos and music CDs⋆ Homescan scanner-based consumer panel services⋆ Homepanel diary-based consumer panel services⋆ Trade Planner consumer panel services for retailers⋆ Consumer facts and channel facts syndicated information servicesCustomized Research Customized research services include quantitative and qualitative studies that deliver information and insights into consumer attitudes and purchasing behavior. Other studies measure customer satisfaction, brand awareness and advertising effectiveness. Simulated test-marketing services are used to launch new products or reposition existing brands available in more than 60 countries. Clients of Principal Brands A wide range of industries, including fast-moving consumer goods, computers, telecommunications, financial services, automotive, travel and leisure, and more ⋆ Customer satisfaction research⋆ Winning B ands brand equity research⋆ BASES simulated test-marketing services⋆ ACNielsen Market Decisions live/in-store test marketing serviceMedia Measurement Media measurement services provide information on inter-national television and radio audience ratings, and advertising expenditure and print readership measurement. This information serves as the essential currency or negotiating advertising placement and rates. TV ratings are available in 18 countries; radio ratings in 12 markets; and advertising expenditure measurement in 31 markets. Clients of Principal Brands Television and radio broadcasters, cable and satellite TV providers, publishers, advertisers and their agencies, media planners and government agencies ⋆ Peoplemeter television audience measurement services⋆ ACNielsen CABSAT Asia cable and satellite television audience measurement services⋆ AdEx International advertising expenditure measurement services⋆ Nielsen//Net Ratings⋆ Net Watch⋆ Web Audit⋆ Web AdEx Internet monitoring servicesAdditional Services In addition, ACNielsen markets a broad range of advanced Merchandising and Decision Support software and Modeling and analytical services as well as services that provide a Global Perspective. These products, used in conjunction with the services described above, help clients integrate large volumes of information, evaluate it, make judgments about their growth opportunities and plan future marketing and sales campaigns.
Evaluating Marketing Mix Many factors impact consumer purchase decisions and identifying what is most important to your consumers is always a challenge, made harder when your products are developed outside a market for which they are marketed eventually. In general the combination of product, price, positioning and packaging in totality - not just one or two of these elements in isolation - drives either success or failure. With the use of Conjoint Analyses, Choice Modeling and similar tools, ACNielsen can determine which elements in your product or service concept are fundamental to success and in the eyes of your customers, which levels of those elements are the most desirable. Such techniques can be used to: ⋆ Test whether product or service concepts are consistent with desired positioning⋆ Find out whether product and/or packaging modifications are acceptable to current and potential consumers⋆ Evaluate the impact of a product launch on your own and competitors' brandsOptimizing Advertising Budget Advertising costs are an expensive component of the marketing mix, at times accounting for the lion's share of the marketing budget. ACNielsen Advertising Research services are specifically designed to help advertising agencies and their clients make the best use of budgets at all stages in the advertising process, from development and pre-testing through the evaluation and tracking post-launch. Creating Effective Advertising Campaigns To assist in advertising development, ACNielsen studies conducted by highly experienced research teams. We have delivered effective creative development research for over 20 years and been part of teams that have created award winning advertising in many countries. ACNielsen Advertising Pre-Testing enables you to assess your advertising in the context of what it is designed to achieve. It increases the opportunity for the advertising to work according to a pre-defined strategy by helping to determine whether that impact and memorability are at the desired level and that the consumer understands what is being communicated in the desired way. Understanding Customers ACNielsen Worldwide Consumer Panel Services provide marketers with key Consumer Insights in 18 countries around the world, capturing actual consumer purchase information for almost 125,000 households. ACNielsen provides insights into buying behavior across every outlet, from warehouse clubs to convenience stores and from supermarkets to independent drug stores and mass merchandisers. Using patented state-of-the-art in-home scanning technology or in some markets, more traditional purchase diaries, ACNielsen Homescan and Homepanel products provides clients with valuable insight into consumer shopping behavior. ACNielsen Worldwide Consumer Panels are demographically balanced to represent the national population of the individual countries and are readable at the regional, local market and retail account level. The Consumer Insights delivered by these consumer panels represent the definitive source for understanding consumer purchase behavior and shopping patterns for any segment of the population across all retail outlet types. Testing For Success The route to product success in one market rarely repeats itself elsewhere. Failure to grasp the specific needs of a new market can be costly, both financially and in terms of damaged corporate image. In volatile, ever-changing markets, wise decisions can yield enormous rewards - mistakes court disaster: wasted advertising spend, distribution and production expenses, damage to your brand name and equity. Developing new products requires effective ways to minimize risk and maximize gain. Product research, whether conventional placement or at a sensory level, reduces risks and helps fine-tune the marketing mix before launch. Many emerging markets are ripe for the development of new products, services and concepts, providing marketers with unique challenges. This unique opportunity has attracted the world's major players to compete directly with local and regional companies in these markets. ACNielsen has unparalleled experience worldwide in administering and interpreting standard in-home and central location product tests. ACNielsen Product Research is offered across all stages of product development, from concept to launch. Multi-Country Customized Research Globalization of companies, brands attitudes and trends is gaining pace. To grow globally, businesses require research-based market intelligence to a common standard worldwide to gain a clear understanding of the world's diverse consumers and markets. As companies increasingly centralize their market research requirements ACNielsen International Research is uniquely positioned to deliver the gold standard in multi-country research through a network of more than 100 ACNielsen country operations and over 18,000 market research professionals around the world. As the world's leading provider of retail, media, household panel and consumer information services, ACNielsen has unparalleled experience in delivering consumer insights to many of the world's most successful international corporations; advertising agencies and media owners; the telecommunications, pharmaceutical, information technology, travel and leisure, financial and business services industries; as well as to national and international government agencies. Understanding Customers and Markets To grow in a challenging global marketplace you need clear understanding and insight to the dynamics of your customers and your markets. With operations in more than 100 countries worldwide, ACNielsen understands market dynamics, provides consumer insights and develops strategies that generate increased sales and profits for you. Our wide range of Customized Research Services includes: ⋆ International and Regional Research⋆ Market Segmentation and Positioning⋆ Product Test Marketing⋆ Live/In-Store New Product Testing⋆ Live/In-Store Existing Product Testing⋆ Simulated Product Testing⋆ Marketing Mix Evaluation⋆ Pricing Research⋆ Advertising Development and Testing⋆ Brand Equity and Advertising Tracking⋆ Qualitative and Motivational Research⋆ Customer Satisfaction SurveysThe Voice of Experience Taking what consumers say at face value is usually as complex and bewildering as the people themselves. It takes a thorough understanding of the world's cultures to read between the lines and fully grasp the subtle nuances of what is said or often left unsaid. To succeed globally, you need to blend consumer understanding with a creative and disciplined approach to market research. ACNielsen offers the breadth of international research experience and range of marketing research services offered through its more than 100 companies worldwide. ACNielsen contributes to your commercial success by providing a better understanding of your markets, with market research focused to meet your specific requirements. ACNielsen's unique ability to integrate its retail measurement and media measurement services further enhances ACNielsen Customized Research Services for greater consumer insight. Experts Who Understand Needs Effective research starts with a thorough appreciation of the needs of you, the client. As market competition continues to accelerate, market research solutions must be delivered faster and more cost-effectively than ever before. These solutions must be communicated comprehensively - to you and your colleagues, locally and often internationally. At ACNielsen, top marketers and researchers work together, seeking out solutions to meet the needs of local markets, regional as well as global headquarters. Working ACNielsen builds an understanding of the priorities and imperatives that confront you in your specific marketing environment. We work with you to develop optimal marketing research services within the framework of your organization. As such, ACNielsen staff is carefully trained to work in multi-lingual and multi-cultural environments
Multi-Country Research Successful multi-country research requires an in-depth understanding of, and feels for each market. It demands knowledge of what can and cannot be done. It requires the ability to interpret and compare findings from a range of different cultural and socio-economic backgrounds. ACNielsen International Research is the specialist multi-country research division of ACNielsen. Our international network has been built for the development, management and analysis of multi-country projects and research programs on consumer and business-to-business customers. ACNielsen International Research combines research expertise and multicultural understanding with an unparalleled range of services to provide its clients with timely information-based solutions. Through custom-designed projects, ACNielsen International Research provides its clients with actionable information which: ⋆ Is technically and methodologically sound⋆ Is designed for multivariate analysis to deliver insights⋆ Is comparable from country to country⋆ Has interpretation as well as description⋆ Takes account of cultural factors and local market situations⋆ Reflects an understanding of regional, global developments as well as local country issues⋆ Has the authoritative ACNielsen name on it.The ACNielsen International Research network operates from offices in the United States, Hong Kong, Singapore, Australia, Japan, The Netherlands and the U.K. Staffed by professional researchers with genuine international research experience representing over 20 nationalities and speaking 20 or so languages. Through a single contact point, the ACNielsen International Research office in the United States provides research support services to USA-based companies with research needs abroad and foreign-based companies with research needs in the USA. With over two decades of international research experience, we have serviced companies in diverse industries such as... ⋆ Agriculture⋆ Automotive⋆ Banking and Financial Services⋆ Business Services⋆ Consumer Packaged Goods⋆ Cosmetics⋆ Energy/Utilities⋆ Entertainment⋆ Hotel and Hospitality Services⋆ Information Technology⋆ Management Consulting⋆ Media and Advertising⋆ Pharmaceutical and Medical⋆ TelecommunicationsDelivering Knowledge for Informed Decision-Making ACNielsen Decision Support Services enable organizations to leverage the application of ACNielsen's robust market and consumer information for tailored, rapid and well-informed decision-making. Decision Support Services support sophisticated multi-dimensional reporting, data navigation, analytical modeling, and graphical presentations and expert systems tools. In 1996, ACNielsen introduced to the consumer packaged goods industry the first service using the Internet to deliver its information products. Clients can now deliver ACNielsen information over the Internet to anyone within their organization, regardless of location. ACNielsen Sales and Marketing Applications ACNielsen Sales and Marketing Applications are a range of solution-oriented tools that integrate ACNielsen's technology, business expertise and analytical capabilities to address specific business needs, enabling organizations to plan, analyze and execute successful marketing and sales programs. ACNielsen combines data and software into an analytical framework and adds value by providing the tools and services for analysis, interpretation and insight. Understanding Product Performance and Market Dynamics The cornerstone of ACNielsen's business, Retail Measurement Services is the industry standard for quality data on product movement, market share, distribution, price and other market-sensitive information in more than 80 countries across six continents. Using in-store scanning of product codes and store visits by professional auditors; ACNielsen offers a complete portfolio of sample and census information across the food, household, health and beauty, durables, confectionery and beverage products industries. Retail Measurement Services help management gauge product penetration, overall product performance, distribution, promotion effectiveness, and price sensitivity. Whether long-term strategic planning or tactical decision-making, ACNielsen measures and tracks sales volume, selling price, observed promotion and merchandising execution, encompassing an organization’s own brands as well as competitive brands. ACNielsen Enters New Markets India In late 1998, ACNielsen began auditing in India. We are proud to announce that we are now covering over 50 categories in the 25 Key Markets. Initial analysis shows big differences in brand performance by city, with significant opportunity for customer business gains. Kenya, Tanzania, Uganda Operating since early 1998, we currently monitor sales in urban areas. Nigeria Sales through urban outlets in the 8 principal cities are now available
OBJECTIVES OF ACNIELSEN
ACNielsen Vision To be Recognized Worldwide as Premier Professional Services Firm in Market Research
Core Purpose
Contribute to Our Customer’s Success Worldwide by Providing a Better Understanding of Their Markets
Core Values Integrity & Honesty; Respect &Development of people; Excellence & Innovation
PRESENT STATUS OF ACNIELSEN AFTAB ACNielsen Corporation & AFTAB Associates Announce Closure of Merger Deal AFTAB Associates Pvt. Ltd. & ACNielsen Corporation on May 17, 2001 announced the finalization of an agreement that would see the merger of all their market research activities in to a new joint venture company, ACNielsen Pakistan (Pvt.) Ltd. This new company would trade under both the ACNielsen & AFTAB trade names and would be known as ACNielsen AFTAB. By combining the recourses of over 18 years of experience in the Pakistani Market represents by the AFTAB Associates with the global reach, experience and methodology of ACNielsen this new joint venture will be offering a combined retail measurement (Retail Audit) and consumer research (quantitative and qualitative; customized and syndicated; Ad-hoc and continuous/ tacking) services to all national and international clients whose requirements include a comprehensive, high quality view of their product’s performance and the effectiveness of their marketing strategies. This represents the most significant over joint venture in the history of marketing research industry in Pakistan and the largest long-term commitment of any international player into this field. ACNielsen, a division of VNU, and international publishing and media & business information group, listed on the Amsterdam stock exchange, is the world’s leading provider of marketing research information with over 20,000 employees and operations in more than 100 countries. Its research products include retail measurement (The use of a large panel of retail outlets to measure market shares, retail penetration and the effectiveness of marketing and promotional activity), Customized research and consumer panel to evaluate consumer attitude, trends, behavior and buying habits as well as media research including advertising activity and effectiveness, Television, Radio and other media audience measurement. ACNielsen AFTAB is the largest Marketing Research Company in Pakistan. Its competitors are lagging for behind it. It enjoys a reputation for satisfying a large number of Domestic as well as foreign clients. It is providing a wide range of research studies. Research Studies handled by ACNielsen AFTAB can broadly be classified into the following two categories. Ad-hoc or one time research studies On-going or perpetual research studies. Ad-hoc- studies: As the name suggests, the ad-hoc research studies are those research studies, which are assigned to ACN by a client as a one-time exercise against a specific objective. As soon as a report is submitted to the client and found satisfactory, the research study is considered complete. A typical ad-hoc research study takes about 2-3 months to complete. On-going- studies: ACNielsen AFTAB also conducts on going or perpetual research work for various clients. Such on-going research usually involves tracking or monitoring of a particular market Phenomenon on regular basis with periodic reports submitted to the client after a certain interval of time. Currently ACN is handling following types of on-going researches. Retail Audit ⋆ Marketing Index⋆ Media Research⋆ Omnibus SurveyACNielsen AFTAB is presently offering three specializations in research services. Customized research 1. Quantitative Research 2. Qualitative Research 3. Retail Measurement service
Merger of AFTAB Associated and ACNielsen
ACNielsen an Overview ⋆ Founded in USA 75 years ago⋆ World's largest market and media research company⋆ Offices in over 100 countries⋆ First TAM Service in US in 1950ACNielsen Media International ⋆ Largest TAM organization in the world⋆ Television Audience Measurement service in over 25 countries⋆ All media services: television, newspapers magazines, radio, Internet and advertising expenditure and monitoring.ACNielsen Measure Science Practice ⋆ Global practice⋆ Dedicated intranet⋆ Supports the quality and statistical integrity of all services⋆ Defines methodology, controls, and standards worldwideACNielsen Pakistan (PVT) LTD Is Now A VNU Company ⋆ VNU – Dutch Publishing Company⋆ Now the leading/truly Global Media and Marketing Information CompanyThree business groups of VNU :⋆ VNU Media and Measurement Information⋆ VNU Marketing Information⋆ VNU Business MediaCOMPANY INFORMATION ACNielsen AFTAB Offers These Specializations in Marketing Research Quantitative Research Special Projects: ⋆ Media Research⋆ Financial Services Research⋆ Communication / IT Research⋆ Automotive, Travel and Leisure Research⋆ Social Marketing Research⋆ Trade Research⋆ Customer satisfaction Survey⋆ Employee Satisfaction Survey⋆ Tobacco Research⋆ Onion Polls⋆ Industrial Research⋆ Business- to- Business Research⋆ Desk ResearchConsumer Research ⋆ Knowledge, Attitude and Practices (KAP) Studies⋆ Central Location / Blind testing⋆ Advertising Research⋆ Marketing Index- Ongoing syndicated Consumer Tracking⋆ Omnibus Survey⋆ Pharmaceutical Research⋆ Environment Research⋆ Prescription Monitoring Studies⋆ Psychographics / Lifestyle Research⋆ Telephonic Surveys⋆ Food Service SectorQualitative Research ⋆ Focus group discussion⋆ Extended Groups⋆ In-depth Interviews⋆ Projective Techniques⋆ Neuro- Linguistic Program (NLP)Retail Audit ACNielsen AFTAB’s Retail Audit methodology and reporting is in line with International standards. Retail Audit is a paramount research tool for monitoring Brand shares, Consumer off-take, Distribution effectiveness and efficiency. ACNielsen AFTAB’s Retail Audit covers a wide range of packaged grocery, toiletries, tobacco, and other fast moving consumer goods MEMBERSHIPS American Marketing Association (AMA) European Society for Opinion and Marketing Research (ESOMAR) Management Association of Pakistan Marketing Research Society (MRS) U.K Marketing Research Society of Pakistan (MRSP) ACNIELSEN AFTAB’S MISSION STATEMENT “ Our Mission Is to Be Recognized, ThroughContinuous Investment in People and Technology, As The Most Competent and Credible Marketing Research Institution Providing Reliable, and Timely And Actionable Marketing Insights To Our Clients, contributing significantly to their success ”µ MissionA strong word showing that we are fully committed to each and every word; it is our mission; we are bound to follow this in word and spirit. µ To Be RecognizedNot only “To be but also to be recognized”. That means we should not only “be” whatever the mission statement says, we should also be seen, perceived to be. That requires good job done as well as proper promotion / client-servicing. µ Investment in PeopleInvestment in people requires better hiring, training and incentives/package. A better retention policy is also needed. µ TechnologyContinuous investment in technology; hardware, software, new product development; importing branded products; communication technology; etc. µ CompetentIn all respects; people, systems, technology, client servicing, FW, DP, etc. Improvement in competence should be an on-going process. We should have the ability to “change” with the changed requirements/environment. Some one said: “If the rate of change inside an organization is slower than the rate outside, death is in sight”. µ CredibleCredibility should be both actual as well as perceived, includes honesty and integrity in the field and all other steps in the research process. Credibility would also include ability to interpret data in a credible way. µ Marketing Research InstitutionThat clearly shows where out focus is. Just “marketing research” and that’s it. µ ReliableAgain, integrity and honesty in the process are key requirements. Control systems are needed to ensure reliability of data. Integrity should not be assumed, it should be “seen” both by our clients and us. µ TimelyStrict adherence to & monitoring of schedules are needed. Clients should be informed of status, preferably each week, regularly, voluntarily, to show the importance as well as compliance of timeliness. µ ActionableClient’s “Action standards” must be understood before the project starts. Results (both data and report) should help in actions against the standards. µ Marketing InsightThis is where Marketing Research is different from just “data”. We should not be just providers of data; we should be providing insights leading to solutions. That requires special analysis and report writing skills and we should work hard, through better hiring and training, to acquire these skills. µ To Our ClientsWe exist because of them. We should respect them; all of them; small or large; local or multinational or international. All that we do should be in the light of what our clients’ needs/ask for. µ ContributingWe should be adding value to our client’s business performance. Unless we can do that, there is no reason for our “being”; we won’t be needed (by our clients) in the long run. µ SignificantlyOur contribution should be visible/ seen. Clients should clearly perceive that our research has improved their performance. Requires specialized analytical and marketing skills Lets acquire these. µ To Their SuccessTheir (client’s) success is our success. It’s a sort of partnership relationship. If we don’t/can’t help them succeed, we are reducing chances of our own success in he long run.
CLIENTELE Since the establishment of AFTAB Associates, the company has been regularly working for Procter & Gamble, Reckitt & Colman (Reckitt Benckiser), etc. Some of the important clients of the company are: AGB McNair Agrevo Amer American Vision Care AMI BASES BASF BBC Caltex Chaudhry Dairies Citibank Continental Biscuits (LU) Cupola Dane Foods DeBeers EBM/ Peak Freans FPAP Frank Small & Associates Futures Group Glaxo IBM IMRB Infratest Burke John Hopkins University Johnson & Johnson Manhattan Pakistan MARG MBL Mediators MEMRB MERAC Ministry Of Health Muller & Phipps Nation National Foods Nestle/ Milkpak News/ Jang NTM P&G Packages PARC PCSP PEL Pepsi Philips
PTC/ BAT PTV Qarshi Rafhan Best Foods Reach Reckitt Benckiser Sabro Savola Servis SMP/ ISSF/ PSI SRG Tapal Tea Tetrapak The Gallup Organization Time Magazine Total Research UDL UNDP/ ITC UNFPA UNICEF USIA Wazir Ali Industries WHO Zee TV
RELEVANT EXPERIENCE Survey of Influential People of Pakistan about 11th September We have done survey of influential people of Pakistan during which we interviewed around 10 most of influential people form 5 different segments of the society, those segments were politics, Media, Business, Culture, and government. We interviewed people like Imran Khan, Tahir-ul-Qadri, Irshad Ahmed Haqqani, Tariq Ikram, and a lot more significant figures like him. This survey was a part of a research projects that published and got a good response from the media. Survey on Post 11th September Very recently we have conducted a research surrey in Pakistan for Gallup USA, which was a part of the research project that was conducted in 9 Muslim countries including Pakistan. In this project we covered a sample size of 2000 adults (male/female, urban/rural) of the country. Through this survey we basically has to fine out people’s opinion about the circumstances in the post September 11 scenario, their general opinion about the afghan war, America and other western countries, their likes and dislikes about the western lifestyle. The results of this survey were published by all the major media players of the world which shows the success and quality of the survey. As per CNN, there is only 1% margin of error in the results of this survey. Omnibus Surveys We have been doing omnibus surveys for quite sometimes now and we have done it for many clients out of which the most significant is USIA (United States Department of International Affairs). A very important feature of omnibus surveys is that although each waves is sponsored by more than none clients but he secrecy of the data is definitely ascertained. We have separate sections for separate clients and product categories and it helps us to keep a separate track of data for each client.
Survey on Corruption We have done a corporate household study for Lahore University of Management Sciences. In this study our main objective was to assess the penetration and effects of corruption in the taxation systems on different institution of the country. For this purpose we did two kinds of studies, corporate and general public. From the corporate sector, we had a sample of 250 spread evenly among both types of organizations i.e. manufacturing and services providing organizations and interviewed around 1000 individuals males/ females of age 21 and above across Pakistan we interviewed our respondents regarding corruption and modes of corruption prevailing in various institutions. World Business Environment ACNielsen AFTAB has done a world business environment survey. The main objectives of this survey were to enable our sponsors to under stand different hurdles in the establishment and development of the private entrepreneurs. This survey was aimed to assist the government of Pakistan in understanding the factors that pose problems in the development of the private business and on the basis of which it could redesign its policies that help these businesses to flourish. Establishment, Media Habits and SEC Survey ACNielsen AFTAB has recently completed a large-scale pan industry media habits survey covering entire urban Pakistan. A significant landmark in the research industry was achieved when Pakistan Advertisers Society (PAS) entrusted AFTAB Associates to carry out the first ever “Establishment, media and Socio-economic Classification Survey” in Urban Pakistan. To meet the objectives of this survey more than 40,000 interviews were conducted in over 20,000 household across 116 cities of the four provinces. Establishment survey is necessary pre requisite for setting up an efficient media research and the Television Audience Measurement services. This survey has established that 73% of the urban households in Pakistan own a television set. The size and structure of household and television viewer sip habits of all 12 + individuals have been quantified. In addition socio-economic classes in urban Pakistan have been defined and their sizes determined which have been instrumental in panel selection for TAM and reporting analysis of results and in determining the necessary panel controls. Seven SEC have been identified, defined and profiled. Agri Based Rural Researches ACNielsen AFTAB has been conducting a panel study for Cotton crop pesticide of four years in rural Punjab and Sindh. Recently, we have also conducted a usage and attitude survey for rice crop protection products in rural localities of Pakistan. Media Usage Survey for BBC BBC carries out media usage surveys internationally. In Pakistan, we have carried out his nationwide survey four times for BBC. The randomly selected sample size was more than 40,000 in urban and rural localities. Chakwal-Door Step Project FPAP, with assistance from IPPF had launched a large scale project in Tehsil Chakwal spanned over 5 years, during which efforts were made to increase the CPR in the area significantly. ACNielsen AFTAB was selected as the research agency to do baseline surveys and monitor the progress of the project through evaluation surveys carried out at various intervals during the 5 year period. The sample size was 1000 for the study Assessment of the facilities of various types of services providers is a part of the project. Narowal-Door Step Project After the Chakwal project, FPAP has launched a similar project in Tehsil Narowal with assistance from ODA. The objective was to assess the replace ability of the activity so that it can be implemented in other areas too. Awareness and Attitude about AIDS A random sample of 4,800 male/ female adults was covered to know their level of awareness and perceptions etc. about AIDS. The national Aids program cosponsored by the world health organization sponsored this. Family Planning & General Health Related Researches We have bee awarded an IQC (indefinite Quality Contract) by the FUTURES group of Washington DC. A series of various types of researches would be conducted. Different sample of different sizes were used for the study. Impact Evaluation of Health Education Media Campaign This study of impact evaluation was undertaken on behalf of Ministry of Health, Government of Pakistan to determine the awareness level, attitude and behavior of adult (15+ year) population of Pakistan about the ministry of health’s media campaigns under the following programs: ⋆ PM’s program for family planning and primary health care⋆ Expanded program of immunization/ control of Diarrhea Diseases program⋆ Aids prevention program⋆ Anti smoking campaignA sample of 2026 individuals was taken for the research purpose. Placement Survey In more than 75 cities across Pakistan, ACNielsen AFTAB conducted a placement study in which more than 150,000 cigarette packs were placed. Category Penetration Survey They have twice conducted category penetration study in Urban and Rural Pakistan. This study was conducted in 39 cities and 188 villages. Profiling Survey For the first time in Pakistan, a profiling study to understand the snack food habits was conducted in urban Pakistan. A total of 3,000 people were contacted 3-4 times during this survey. Every Dealer Survey for Pepsi Pepsi Cola International carries out periodic census of all soft drink sellers in various countries of the world. In Pakistan we have conducted this census twice for PEPSI. Approx. 90,000 outlets were surveyed nationwide. Nation Wide Study of the Alternate Fuel Patterns This large study covered all four provinces and was spanned over 10 months. It was conducted on behalf of the Oak Ridge National Laboratories ORNL, USA. Wood Fuel Survey for UNDP This large-scale survey of wood fuel sellers and users was conducted on behalf of UNDP. All four provinces were covered.
ESOMAR International Code of Marketing & Social Research Practice ESOMAR (European Society for Opinion and Market Research) is a society that gives the membership to the Opinion and Marketing Research Professionals. It is a worldwide association of Opinion & Marketing Research Organizations. European by origin, global by nature, ESOMAR, founded in 1948, unites over 4000 members in 100 countries, both users and providers of research. Members come from all industry sectors, from advertising and media agencies, universities and business schools as well as public institutions and government authorities. ESOMAR’s mission is to promote the use of Opinion and Marketing Research, for improving decision making in business and society, worldwide. ESOMAR fulfils its mission through ⋆ Seminars and Conferences, held regularly, throughout the world⋆ Professional Publications on all aspects of Opinion and Marketing Research⋆ Training and Education, through workshops and distance learning⋆ Promotion of Codes of Professional and Ethical Conduct and guidelines of best practice⋆ Representation of the Research Industry to international bodies.Membership in ESOMAR is open to all those who are actively involved in, or concerned with professional standards in Opinion and Marketing Research. ESOMAR is resolutely non-political. All ESOMAR Members as well as the Management of their companies listed in the ESOMAR directory undertake to comply with the ICC/ESOMAR International Code of Marketing and Social Research Practice. The Code has been jointly drafted by ESOMAR and the International Chamber of Commerce and is endorsed by the major national professional bodies, around the world. ACNielsen AFTAB has a Membership of ESOMAR and follows their rules and definitions such as: Marketing Research is a key element within the total field of marketing information. It links the consumer, customer and public to the market through information which is used to identify and define marketing opportunities and problems; generate, refine and evaluate Marketing actions; improve understanding of Marketing as a process and of the ways in which specific Marketing activities can be made more effective.Researcher is defined as any individual, research agency, organization, department or division, which carries out or acts as a consultant on a Marketing research projects or offers their services so to do.Client is defined as any individual, organization, department or division (Including one which belongs to the same organization as the researcher) which requests, commissions or subscribes to all or any part of marketing research project.Respondent is defined as any individual or organization from which any information is sort by the researcher for the purposes of a Marketing research project. The term covers cases where information is to be obtained by verbal interviewing techniques, postal and other self- completion questionnaires, mechanical or electronic equipment, observation and any other method where the identity of the provider of the information may be recorded or otherwise traceable.Interview is defined as any form of direct or indirect contact, using any of the methods referred to above, with respondents where the objective is to acquire data or information, which could be used in whole or in part for the purposes of an Marketing research project.Record is defined as any brief, proposal, questionnaire, respondent identification, checklist, record sheet, audio or audio-visual recording or film, tabulation or computer print-out, EPD disk or other storage medium, formula, diagram, report, etc. In respect of any Marketing research project, whether in whole or in parts. It covers records produced by the client as well as by the researcher.( Source: ESOMAR book of European Society)
Member Organizations of ESMORE in Pakistan Gallup Pakistan Address H 45, ST.52, F-7/4 Islamabad 1005, Pakistan eContact isb@gallup.com.pk Established 1980 Gallup is a full service research organization with an emphasis on continuous research, specifically TV viewers’ panel, Consumer Panel, Advertising Monitoring and Third Party Evaluation and Monitoring Studies. Gallup provides the country's Television Ratings subscribed by all of top ten advertising agencies and carries out extensive research on newspaper and radio audience. It is a pioneer in launching people meters in Pakistan. Gallup/adtrak, a part of Gallup Pakistan, is a leading advertising expenditure monitoring service in the country. Gallup is also a pioneer in Pakistan in providing syndicated Consumer Panel data. Gallup provides a wide range of quantitative and qualitative consumer research and carries out Mystery Shopping for a number of clients on an ongoing basis. Gallup is one of the country's most respected opinion and socio-economic research organizations and is widely quoted in national and international journals. It works extensively for such world bodies as World Bank and UNICEF and has a strong team of academicians among its Consultants. It has taken a lead role in research on Small and Medium Enterprises (SMEs) in the area of economic research and "Problems of Children" in the area of social research. It has done extensive work on the subject of Health, Hygiene and Sanitation with special reference to their communication issues. Gallup Pakistan works closely with Taylor Nelson, one of the world's largest marketing research organizations. SB&B marketing Research Address 83/F Model Town, Lahore 54700, Pakistan eContact ssb@brain.net.pk Established 1996 SB&B has been helping its high profile clients in developing effective marketing strategies by providing actionable results on consumer behavior and market conditions. It extends high-quality and usable market information in rendering both Qualitative and Quantitative research services - designed specifically to the clients’ needs. The Philosophy “Our philosophy is to develop long-term relations with our clients, based on understanding their business, selecting the most appropriate and cost effective methodologies, accepting challenges and exceeding expectations.” Primary Resource As with any professional service, the primary resource the company offers is the experience of the staff. The research process at the company utilizes a ‘participative approach’ - and it works in close conjunction with client representatives. Secondary Resources ⋆ Extensive field network all across Pakistan⋆ Focus group facilities with one-way mirror, & audio / video capabilities⋆ Integrated word and data processing⋆ Computer-generated graphics⋆ Advanced statistical packages⋆ Mock up super-market shelvesData Collection The company designs research instruments, which ask the right questions using the best methodology, such as; Focus/Mini Groups, In-depth Interviews, One-on-One interviews, Telephone Interviews, Central Location Tests, Mall Intercepts, Mail Surveys, Observation Formats, & Projective Techniques etc. Studies Include ⋆ Usage and Attitude Research⋆ Advertising Pre-&-Post Evaluation⋆ Concept and Product Development⋆ Creative Solution Finding⋆ Brand Image and Positioning⋆ Mystery Shopping⋆ Media Research⋆ Customer Satisfaction⋆ Corporate Image Studies⋆ Packaging and Pricing⋆ Social Marketing Research⋆ Employee Satisfaction Research⋆ Secondary Research⋆ Retail AuditReporting Reporting of study results culminates in the development of specific marketing recommendations. The aim is to provide workable solutions to marketing problems based on sound research. SMAR International (Private) Ltd Address 175/0 Block-2, P.E.C.H.S. Karachi, 75400, Pakistan eContact smar-int@cyber.net.pk Established 1966 SMAR International (Private) Limited is one of the oldest independent market research organizations in Pakistan with Head Offices at Karachi and field work arrangements at Lahore, Rawalpindi/Islamabad, Peshawar, Quetta, Multan, Faisalabad, Hyderabad and Sukkur. Since its establishment in 1966, SMAR has served the market research needs of a large number of multinational clients, national private sector concerns and Government organizations. Client's profile includes Banking & Finance, Chemicals & Cosmetics, Electronics and Audio-Visual Components, Computers, Food & Beverages, Pharmaceuticals, Animal Health products, Family Planning & Health Care products. SMAR's interviewing staff comprises of professionals having several years experience and capability to understand the people, languages, customs and traditions in different provinces of the country. SMAR offers a wide range of quantitative, qualitative, ad hoc and continuous market research services on national basis. ⋆ Product usage and consumption pattern surveys⋆ Consumer profile, habit and attitude surveys⋆ Knowledge, attitude and practices (KAP) Studies⋆ Census of retail establishments/ professional services⋆ Image and segmentation studies⋆ New products / concepts tests⋆ Product / brand positioning studies⋆ Brand tracking studies⋆ Packaging and brand tests⋆ Advertising (pre and post release) effectiveness studies⋆ Customer satisfaction measurement studies⋆ Qualitative research: Focus group studies/ In depth interviewing⋆ Retail inventory built up studies⋆ Media evaluation studies⋆ T.V. Viewer-ship surveys⋆ Industrial market size and demand studiesSMAR has successfully conducted several product/service related census assignments involving 100% geographical coverage of major cities. SMAR also offers an omnibus consumer panel research service on syndicated basis that covers 6000 urban households to monitor purchases of a wide range of consumer products such as cosmetics, detergents, toiletries, antiseptic solutions, shoe care products, analgesics, packaged foods, bottled beverages and `OTC' pharmaceutical products. SMAR has developed its own Universe to draw samples and possesses a large database of the national population, classified into rural/urban, age, sex, marital status and other socio-economic factors. SMAR is one of the few research organizations in Pakistan that offers all services including focus group facilities under one roof. All functions are carried out by permanent full/part a time staff who works exclusively for SMAR. Under no circumstances whatsoever, is any part of the research sub-contracted to third parties. SMAR has its own EDP Division that facilitates quick data coding, processing and analysis.
Market & Consumer Pulse Pvt. Limited (MCP)Address 174/5-H, Defence (L.C.C.H.S) Lahore, Pakistan EContact mcp@brain.net.pk Established 1998 Market & Consumer Pulse private limited is founded by a reputable market researcher, who brings with him over 12 years’ experience of running a market research company in Pakistan where he was working as the managing director. MCP’s slogan is that it is a ‘research company with a difference’. MCP provides all types of quantitative and qualitative research through a team of experienced and research professionals. Among the infrastructure, there are the state of the art Focus Group Rooms, a nation-wide network of field interviewers, data entry and data processing facilities, analyses & interpretation skills. Head of Qualitative Research department is a highly experienced group moderator and have personally conducted over 500 focus groups and in-depth interviews. With offices in Lahore and Karachi, MCP’s field network is spread all over the country enabling the company to start any extensive field operation with minimum advance notice. MCP can handle all kinds of consumer researches including U&A studies, KAP studies, Central Location Tests, Advertising Pre-testing etc. in addition to Trade & Industrial researches, Social Marketing Researches, Rural Surveys, Financial Researches, Qualitative Research Studies, etc
A relative comparison of MCP, SMAR, ACNA, SB&B, and Gallup
Total Methods Used = 13 Comparison of Methods Used by Various Companies
Comparison of Services Offered by Companies
Relative Comparison for Services Offered
POLICY FORMULATION CEO makes the policy formulation. In the absence of CEO, the Country Manager is responsible person. But in some cases each department forms its own polices. The meeting related polices depends upon the situations and according to the requirements of work. ⋆ Review meeting is done mostly bimonthly.⋆ Each department for the purpose of any new study does briefing meetings.⋆ Day- to –Day meeting can also be done so these are not frequent.⋆ Mostly the meeting with CEO is held on every first week of month.⋆ RMS department usually arranges bimonthly meetings.⋆ Each Department can do a monthly meeting independent.PERSONNEL IN VARIOUS DEPARTMENTS 1-Retail Measurement Department Mr. Haroon is the Director of this Department. The division of RMS department is as follow: Client Service and support :There are three research executives are in this department Miss Samia (Senior Research executive) Mr. Shakeel Butt (Account Manger, Retail Measurement Services) Mr. Hasnian (Research executive) Mr. Nauman (Senior Research Executive)
2- Data Processing Department In Data Processing department there are: Miss Allia (Research executive) Mr. Asad (Research executive) Mr. Faiz (Research executive) Mr. Amir (Research executive) Mr. Mazhar (Research executive) All the data related work is done by all of them. The tab plans or other related work are done by them i.e. what new entries in categories should include and what others should not add. Similarly they also do graphic work. Field Personnel There are 181 people are working in Field personnel. Their major work is to collect data and also audit the shops. They audit from retailers or purchasers, closing stock and prices. This information is than provided to company on demand. 3- Qualitative Department 1 -Miss Shazia (Senior Research executive)She is working here for more than 3 years. The meetings with clients, proposal preparation is done for herself. She handles the groups from the age ranging from 15-45 years females and also in some cases males. The Tetrapak, and CDL are her big clients. 2- Mr. Imran Nazir:He is Deputy Manager and working from 5 years. He also handles some groups like Philips, Tobacco, and Pepsi etc. The final reading and terms and conditions of proposal are done by him.
4- Quantitative Research Department Consumer Research Department Mr. Arslan Ashraf is Deputy Manager of this department and working from 5and half years. Mr. Zahid is research executive and is working from nearly two years. Both do all the working. Business to Business Research: (Special Projects) Mr. Hassan Farooq is Manager of this department. There are two more members working in this department at Lahore. 1 -Miss Rubina Ali (Research Executive)2- Mr. Yasir (Research Executive)3 - Mr. Nadeem (Senior Research Executive)5- Statistic Department Mr. Shahzad is the senior research executive of the department. All the statistical work is done by him Miss. Ambreen is also appointed as research executive in this department. 6- Administration and Personnel Department Mr. Saleem Butt and Mr. Mansoor are in this department. All the maintenance related works like issuing of stationary, checking of phone calls, and maintenance of computers are done in this department. 7- Data Processing Department Mr. Mazhar Dar is the Incharge of this department. Mr. Jafar and Mr. Rizwan are working with him. All the data are converted into soft form (computer). After correction they give the final result 8- Field Work Department Mr. Irfan is Incharge of this department. Mr. Ikram Sheikh is Incharge of Punjab Division. The field intimation, checking of questionnaires, daily status sheet, and arrangement of briefing is done in this department. 9- Coding & Editing Department This department checks daily status sheet, contact sheets and random sheets. Translation of the answers of the questionnaires is done in this department. 10- Finance & Accounts Department Mr. Irfan Hussain is the manager of this department. Mr. Ayaz and Mr. Imran Nazeer are senior research executives. All the financed related works like maintaining salary; cash accounts etc are their major works 11- Desk Top Publishing Mr. Tayyab is the Incharge of this department. He is working here for five years, a very learned and experienced person; he helped me to understand the working of this department. He manages all the receiving of mails. Mr. Mehboob and Mr. Asim also work in this department
MAJOR MANAGERIAL POLICIES Organizational and Managerial policies at ACNielsen AFTAB include; 1. Recruitment Policy 2. Remuneration Policy 3. Finance & Accounting Policy 4. Pricing Policy 5. Miscellaneous Policy 1. Recruitment Policy The recruitment policy includes: µ Selection of ExecutivesThe Selection of an executive involves a series of interviews with Project Manager / Department Head, Managing Director and some times with the CEO. The Concerned Project Manager, who is in the need of an executive, after the permission of Managing Director, starts interviewing applicants and finalizes two or three candidates. Then these candidates are interviewed by the Managing Director and after interviewing, he selects the appropriate Candidate. The formal procedure involves aptitude test in which they have also some sort of translation both in English and Urdu. Mostly after 2-3 interviews candidates are selected. µ Training of Executives:Project Manager / Department head and ultimately the managing director is responsible for the training of selected executives. The selected executive is kept on probation for three Months. ACNielsen AFTAB has only on job training and no separate training is given to the executive. In this short period of time, he has to learn everything. If he performed well, then after three months, he is selected as a permanent employee of ACNielsen AFTAB. 2. Salary Policy Remuneration ACNielsen AFTAB offers a handsome remuneration to its employees without discrimination of Executives and lower level staff. The remuneration given to an Employee Includes: µ SalaryAn attractive and Competitive Salary Package is provided to employees to keep them satisfied. µ IncrementHandsome increments are given to high performers each year; it may be 80% or 30% depends upon the performance of employees. µ House Rent AllowanceACNielsen AFTAB is offering house rent allowances to its employees so that they do not have any residential problem and done work with great satisfaction in order to complete the projects. µ Connivance AllowancesConnivance allowances are offered to managers and directors. ACNielsen AFTAB also does the maintenance of cars. µ Leave EncashmentThe leave policy of ACNielsen AFTAB is that an employee can enjoy one mouth leave during a year. If an employee does not avail this opportunity, then he has the opportunity to en-cash these leaves at the end of year.
µ Daily AllowancesWhen the executives are sent to out station by company, then they are provided accommodation along with food. Lower level employees receive handsome amount of daily allowances in this case. µ Travelling AllowancesACNielsen AFTAB is providing Air travelling services to its executives but no travelling allowance is given in cash to executives. While the lower level employees receive handsome travelling allowance in cash 3. Financial and Accounting Policy Financial and Accounting policy of ACNielsen AFTAB can be classified as Policies Regarding Assets These include: µ Recording of AssetsAssets are recorded at the time when assets are purchased. µ DepreciationAssets are depreciated on the basis of Double Declining Principal, if an asset is purchased during the year, the full year depreciation is charged and no depreciation is charged for assets that disposed off during the year. µ Maintenance:Maintenance of Assets is charged to Profit and Loss Account. µ Gains or losses from sale of assets:Gains or Losses from sale of assets are transferred to profit and Loss Accounts.
µ Number of Asset Ownership.Mostly, the assets are leased. µ AmortizationAmortization is charged to P & L Account. Revenue And Payment Policy: These include: µ Revenue RecognitionRevenue is recognized or recorded as revenue when it is actually received. µ Billing for ProjectsGenerally Clients are either billed by executive Incharge of the study or F & A dept. but mostly the big clients are billed by F & A department. µ Terms of PaymentsGenerally the terms of Payment are 50% advance and 30% after completion of the Project and 20% after the submission of the report. But these percentages may vary from project to project. Budgeting policy: It includes the following. µ Study BudgetIt is prepared by the concerned executive and approved by F & A department. µ Departmental BudgetDepartment expenses are not budgeted but these are recorded on the actual basis . µ Departmental TargetsIn the beginning of the year, each dept. is given a target and dept. strives to achieve the target. The target is set keeping in View ⋆ Past Experience⋆ Future ProspectsThese targets are set after the agreement between departmental heads, manager of F & A dept. and Managing Director. µ Taxation:Tax is calculated on the basis of study subtotal. Pricing policy: ACNielsen AFTAB adopts no hard and fast pricing policy due to varying requirements of various studies. Vague Criteria formulated by ACNielsen AFTAB for pricing its clients is as follow: ⋆ Objectives of the clients⋆ Size of the study⋆ Sample size⋆ Geographical coverage⋆ Time required collecting the data⋆ Cost involved in data collection⋆ Technicalities involved in study⋆ Nature of respondents⋆ Nature of Interviewers to be hired⋆ Size of Questionnaire⋆ Time spent by executive on Desk Research⋆ Market situationMiscellaneous Personnel Policies ACNielsen AFTAB’s policies regarding hiring an employee, leaving the company, causal leave and overtime work are as follow: µ Hiring Probation:When an employee is selected, he is on probation for a period of three months when an employee is hired by company; a memo is given by the departmental head to the F & A dept. A copy of the memo is sent to P & A department, so that the employee’s name can be written in he attendance register. If a person leave the Company during probation, then company give the salary on daily basis. An employee on Probation can leave Company at any time without the Prior notice. µ Leaving the Company:A regular employee if wants to leave the company then he/she has to give a one month notice prior to his resignation. This is done to make the company able to hire some other person for that job. µ Leave Authorization:The concerned department head authorizes leave. In emergency only a phone call is sufficient. All employees of ACN are entitled to eight medical, eight causal and fourteen annual leaves Emergency leaves can be taken at any time., if the employee had enjoyed all other leaves, then emergency leaves will be transferred to his next year leaves and no salary deductions will be made.
MANAGERIAL STYLES The common practice now-a-days is that there is no hard and fast complex Managerial Style to follow. And usually those organizations are seen relatively working ahead with the organizations having strong or any particular type of managerial style. Keeping that aspect in mind the managerial style followed by ACNielsen AFTAB is very flexible and we can say it is something between the Autocratic and Democratic style of organization. The various characteristics which we can refer to that mix type of style for the company can be described in some points. The style is Directive in style because the director and the manager of the department and the company have confidence in the subordinates that they know exactly what is expected of them. Similarly, it is also Supportive in style that each member of the company is friendly and approachable and shows genuine concern for each other The style is also Participative in nature because top management asks for and uses the suggestion from subordinates for the decision making. Finally, the style is also Achievement Oriented that each and every member of the organization has the confidence that he or she is capable of attaining the goals set is they.
ORGANIZATIONAL MANAGEMENT DESIGN Among the various organisational designs the Organizational Design of ACNielsen AFTAB is primarily based on projects. Therefore, managers are responsible for the completion of the projects not to perform functions. At the same time, it is necessary for any organization to have some work done on functional basis. This necessity is imposed by the inherent of functional nature of same tasks like Accounting & Administration etc. At ACNielsen AFTAB the tasks of Data Processing, Coding & Editing, Accounting and Administration are performed on functional basis when a Project Structure is superimposed on a functional structure, the result is a Matrix Structure. Some times Matrix organization is considered a project organization and the terms are used interchangeably. Hence we can say that a Project plus functional organization is a Matrix organization. The Advantages of Matrix Designs The matrix organization attempts to combine the best of both worlds. In an electric manner, it includes the positive aspects of both the functional and the project design. These advantages can be summarized as follows The project is emphasized by designating one individual as the focal point for all the matters pertaining to it. Utilization of personnel can be flexible because a reservoir of specialists is maintained in functional organization. Specialized knowledge is available to all programs on an equal basis, knowledge, and experience can be transferred from one project to another. Project people have a functional home when they are no longer needed on a given project. A batter balance between time, cost, and performance can be obtained through the build in checks and balances, and the continuous negotiations carried on between the projects and the functional organization ACNielsen AFTAB’s Project Oriented Departments Customised Research Department Quantitative Research Department Qualitative Research Department Retail Measurement Services All the others departments when assist the above departments in completing their projects efficiently are functionally based. In others words, these function based departments perform specific functions each time. In the literature of organizational Behaviour, the department, which is responsible to perform a specific function, each time, is called Service Department. Service Departments Field work department (FW) Coding and Editing Department (C & E) Data Processing Department (DP) Personnel & Administration Department (P & A) Finance & Accounts Department (F & A) Fieldwork Logistics Field work logistics is the integral part of the ACNielsen AFTAB which facilities the whole practices of the research company. ACNielsen AFTAB is fully capable to arrange all the fieldwork logistics. They have the facility of in-house Urdu composing. As for printing of questionnaires are concerned, they also have contracting arrangements with a printing supplier who provide us services on almost daily basis. ACNielsen AFTAB has also arrangements related to interviewers training which would be done through classroom training, mock interview, and field practice. Classroom Training: The first part of training is to educate prospective interviewers on: The role and value of market research The market research process The role of the questionnaire The role of the interviewer The ESOMER Code of Conduct Mock And Practice Interviews: Prospective interviewers have to then interview each other and than go out, under supervision and interview members of the public. If interviewers are recruited for a specific project, than their training will focus on the relevant questionnaire, where the objective is to top up their pool of regular interviewers, ACNielsen use a questionnaire from a typical past project that also contain some less straightforward questions or tasks as well. Duration of Training: There is set number of days for training. It depends on how quickly interviewers learn the project in hand. It is common occurrence for the prospective interviewers not to complete their training, either because they change their minds or because their work is not of a high standard. Interviewer Briefing: In addition, the local researcher executive, field manager or regional manager using interviewer instructions drawn up by the project manager personally briefs all interviewers. Fieldwork Set-up: ACNielsen AFTAB has a complete fieldwork department which has 20+ full time field team, including permanent staff, contractual and ad-hoc regional executives.. ACNielsen AFTAB has the field office at the following base stations: Lahore Karachi Rawalpindi Peshawar Hyderabad Sukkur Faisalabad Multan At these base stations, we have more than 1,000 and ad-hoc interviewers who are ready to undertake any kind of survey across Pakistan. Quality Control: ACNielsen AFTAB also has separate Quality Control teams, which checks the data through call back and logical checks. Further to data receive from the field is also added to check the consistency in the data. There are several layers of quality control: Accompanied Interviews: Regional managers go along with the interviewers to appointments on a routine basis to check that they adhere to procedure. Call-backs: Supervisors telephone the respondent the day after the interview was carried out to check that whether interview was properly carried out. This includes repeating key elements of the questionnaire to check that the answers tally. One in six questionnaires from each interview will be checked in this way. If there are any discrepancies then every questionnaire by that interviewer is back-checked and, depending on the seriousness of the problem, the interviewer returns to get the missing information or the interview is struck off and a replacement one (with a different respondent) is done. If telephone nos. is not available then face-to-face back checking is done. Visual and logic checks: All questionnaires are checked for completeness and obvious errors when they come in. additional logic checks are built into the data entry and analysis program to capture mistakes (which tends to be miss-punches rather than interviewer errors). Client participation: Representatives of client are welcome to attend the briefings, whose details will be specified. It will be possible for them to accompany interviewers once the study is underway. Data Processing Department ACNielsen AFTAB has complete data processing department. Here the open end questions are coded on the basis of the coding frame and entered into the computer. Data punching facility is available in their two offices Lahore and Karachi. The entered data is cleaned through specific cleaning program, prepared for this purpose. Then data is processed in Lahore using Quantum or in other required software. Personnel & Administration Department ACNielsen AFTAB has a separate personnel and Administration department. Where all the work of receiving mails and sending mails is handled this department issues .All the stationary required for working and other mattes of departments are handled by Admin Department.
Finance & Accounts Department No organization now a day can run its business without finance and account departments. As Finance and Accounts Department play an important role in any organization. ACNielsen AFTAB has such department where the budget preparation, invoices, checks are prepared by keeping in view the resources of company. Working Infrastructure of ACNielsen AFTAB When any of the departments mentioned services, the project manager or any of his research executives prepares the research budget and get it approved from the F & A department F&W dept. He also asks the former to arrange a briefing, so that the methodology used in the research process is told to the interviewers. FW department hands over the filled questionnaires to Coding & Editing department. This department review the data forms as the legibility, consistency and completeness’. Open Ended questions are coded here so that they become machine-readable. At the End, the DP Department enters the codes into computer for analysis and generated output according to formats provided. The Project Manager or Research Executive interpret these results and Compile the findings in a report. The Research Executive, the Incharge of the study tries to remain in touch with all service departments and attempts his level of best to complete the study within the budgeted time In short, the Executive Incharge of the study has to create a link b/w all service departments to complete his project. Project Schedule ACNielsen follow certain schedule in the preparation of any report that has to follow all the Departments. Information to function Sample design Instruction to Admin FGD/CLT Moderator Arrangement Questionnaire Development Questionnaire Prestige/Finalization Briefing notes/Moderator guide Questionnaire printing Briefing Field work Recruitment Output formats Filled Questionnaire received at head office Desk checking Transcribing Coding Data entry Raw data examination/cleaning Data processing Tabulated results Top line/Draft report Report checking by MD Finalization and submission
Functions of Personnel Department The personnel department performs two functions: Personnel Functions Administration Functions Detail of these departments is as under: Personnel Department: Personnel department is the backbone of any organization. It is the source of providing the employees that are appropriate for performing specific tasks or designations. In ACNielsen AFTAB the personnel department is responsible only for recruiting employees other than executives. Executives are recruited and selected by the concerned department head in collaboration with the Managing Director. At ACN, the personnel department is headed by a senior executive. Selection of Lower Level Staff: Theoretically the selection of lower level staff is the responsibility of personnel department. But practically the reverse of it is true. The department head that is in the need of an employee select the employee and get it approved from the Incharge of P & A department. The formal procedure of selection involves a long and cumbersome sequence of steps that is generally not followed. When a department needs an employee, it informs to top management, top management asks head of department to give advertisement in newspaper for appropriate candidates. The candidates are interviewed by the head of department in consultation with concerned department head / executive. In this way the best candidate is selected. Approval of selection is obtained from Managing Director. Training of Lower Level Staff: The training of lower level staff is the responsibility of the concerned Executive/Head for which he is selected. Selection of Temporary Staff: At ACN, the Coding and Editing department gets its work done through temporary staff. Department head in collaboration with personnel department does the selection of this temporary staff. 70-100 in each region is selected as temporary staff members. For example, Division is given as NWFP, 30 in North, 30 in south. Selection of Surveyors: Questionnaires are launched and administrated through surveyors. These are also hired on temporary basis. Fieldwork department in collaboration with personnel department does the selection of surveyors. Administration Department The major responsibilities performed by Administration department are given below: Maintenance of Office Equipment Handling of Stationary Issuance of Stationary to Executives Issuance of Stationary to Lower Staff Use of Photocopy Machine Binding Use of Fax Machine Provision of Other Accessories Provision of Tea Noting Time of Entry and Exit Keeping Record of Leave
ACNIELSEN AFTAB (PRODUCTION) ACNielsen AFTAB is not a manufacturing organization so it does not produce any product. ACNielsen AFTAB is a service-oriented organization and it provides the services regarding the Marketing Research to its clients. The services offered by ACNielsen AFTAB are classified into these broad categories. Customized Research: Quantitative Research Qualitative Research Retail Measurement Services A brief explanation of these services is given below: 1. Quantitative research:Theoretically it is one department but practically, it is divided into two departments. Business to Business Research Consumer Research Business-to-Business Research :This is the most important department as far as revenue is concerned; a manager heads it. 4 or 5 research executives assist them. Some of the important Research Studies conducted at Business-to-Business Research department are given below. Research into Specific Industrial Sectors. Financial Research Employee / Custom Satisfaction Survey Social Marketing Research Census Surveys Desk Research Media Research Opinion Polls Social Surveys Agricultural Surveys Tobacco Research Trade Research Information Technology Research Consumer Research: Consumer research done at ACNielsen AFTAB is called custom Designed Consumer Research. It is called “Custom Design” because the research scope and methodology is worked out specifically to cater to the needs of a particular client. ACNielsen AFTAB aim is to help the clients by solving the marketing problems and reducing their business risks by providing informed interpretation of actionable research findings. In addition to usual field surveys, AFTAB Associates has also handled central Location Tests (CLT’s), Product Testing, Advertising Pre and Post Testing etc. Broadly the Consumer Research done at ACNielsen AFTAB includes: Ad Pre and Post Testing Awareness, Attitude and usage (AAV) studies Central Location Tests (CLT’s) Consumer Buying Behaviour Analysis Knowledge, Attitude and Practice (KAP) studies Logo Testing Market Segmentation Studies Opinion Polls Pricing Research Product Usage Test Package Design Testing Hence we can say that ACNielsen AFTAB is capable of handling any type of consumer research to the best satisfaction of its clients.
2- Qualitative Research:The basic purpose of qualitative research is to gain some important insights into specific some problems. Some problems are so vague that they are not properly defined without the help of qualitative research, to handle qualitative research; ACNielsen AFTAB has a separate qualitative research department. The Deputy Manager is the Incharge of this department. The department employs two research Executives who are responsible to conduct qualitative studies in co-operation with the services department. This department helps other research departments in defining the problem, designing the questionnaire, Pre testing and finalizing the questionnaire. At Qualitative Research department, the production is produced with the help of Focus Group Discussion (FGDS) In-depth Interviews Projective techniques Enabling techniques Laddering House Building Techniques. Moderators of ACN conduct Focus Group Discussions and In-depth interviews. The moderators of ACNielsen AFTAB are highly experienced and qualified. For this purpose, ACNielsen AFTAB has its own FGD rooms in Lahore as well as in Karachi. Most of the FGDS and in-depth interviews are recorded on tape with full knowledge of participants for future analysis. 3- Retail Measurement Services :AFTAB Associates started Retail Audit service in Pakistan after conducting a census of urban retailers. The census data was used to select a representative sample of retailers for undertaking Retail Audit. The data collected from the sample shops is projected to the urban universe of retail outlets. Retail Audit is a quantitative survey technique aimed at establishing and tracking: Market shares of competing brands in selected Product categories. Market size, expressed in some common unit e.g. Kilograms, litres, tonnes etc. Comparative distribution coverage of competing brands with shops in stock, out of stock and not handling. Stocks at retail level with number of days the stock would last. Average retail-selling prices. Purchases made by Retailers. At ACNielsen AFTAB, the projects handled by Retail Measurement Services include Grocery items, Tobacco, Toilets etc. Note: (The detail explanation of above three services provided by ACNielsen AFTAB is given in training program.)
Production Facilities at ACNielsen AFTAB The concept of Production facilities is directly applied in case of manufacturing firms, where manufacturing involved hard Physical work, and machine etc. since ACNielsen AFTAB is a service oriented firm so the concept of production facilities cannot be directly applied in this case. But indirectly, this term can be applied to the facilities provided by ACNielsen AFTAB to its executives / employees to provide better and efficient services to its clients. At ACNielsen AFTAB, the following Production facilities are provided to the executives / employees. The Conference Hall The Observation Room The Executive Hall The Data Processing Department The Coding and Editing Hall Library for Secondary data Now a brief discussion of these facilities is given below. The Conference Hall: The conference hall also known as FGD room. It is the most important production facility provided by ACN for conducting the qualitative research. This conference hall is sound proof and used for. Focus Group Discussion Executive Level Meetings Meeting with Clients Conference hall is equipped with latest sound system. A TV and VCR are available in Conference room. The Presentations by the executives are made with the help of multimedia in the conference hall. The Observation Room: The observation room is separated from the discussion room with the help of one-way mirror. The observation room is used to see the responses of the respondents. It is also used for the recording of responses. The executive Incharge of the study and client observed and heard FGD through the one-way mirror to gain in-depth insights in the problems. The observation room is equipped with latest audio and video recording system. The Executive Hall: ACNielsen AFTAB’s set up provides a full autonomy to each and every executive to perform the creative task of Marketing Research.This Executive Hall is apportioned into ten open cabins with the help of hardboard walls. There is a separated room for F & A department. One cabin is reserved for computer operators. These computer operators are responsible for the typing of documents letters, questionnaires and reports etc. The presence of these computer operators in the executive hall helps the executives to get their e-mail and other documents typed quickly and consequently facilitate smooth and efficient communication with the clients. Each Executive is linked with the remaining organization through intercom. Each executive has to look after all the studies vested to him, one study may be in the stage of FW, another may be in the stage of DP department and still another may be going through the process of Coding and Editing. This facility of intercom helps them to supervise each study personally. The hall is fully air-conditioned; very comfortable chairs are available for executives. The tables before them have drawers and a large file cabinet, where record of the conducted studies in process is kept. The Data Processing Department: This department has the following production facilities: Have 45 PC.s, mostly of P-2 version Latest Computer software for example FoxPro and Quantum and Infact Nite etc The production facilities have been divided between two broad scions. Marketing Research Section Retail Audit Section A detail discussion of Retail Audit is given in the coming part-4. The Coding and Editing Hall: The Coding and Editing is an important step in the Research Process. Editing involves reviewing data forms as the legibility, consistency and completeness. Coding involves establishing categories for responses or groups of responses in order to make data machine-readable. The Coding and Editing hall is made for the employees handling the tasks of Editing and Coding. All the Coders and Editors are normally hired on contract basis Coding and Editing hall provides a good working environment to facilitate employees to perform their tasks in best and most professional ways. At ACNielsen AFTAB, the employees have given the autonomy to perform task. They are also given the timely feedback so that they can also improve their performance. Library for Secondary Data: The importance of secondary data in Marketing Research can hardly be over emphasized but the management of ACNielsen AFTAB fully realized the importance of secondary data. To provide general secondary data, a library has been established. The data information regarding the population of country, Economic conditions of the country, Geographical Information and population census reports etc. The library also has the Research Magazines, Pakistan and Gulf Economists, Economics Surveys, newspapers and etc. with the help of this, the executive can also done desk research, which is very fruitful for the organization because it acquires less time. MARKETING MIX OF ACNIELSEN AFTAB Marketing mix is the integral part of the firms for the evaluation of there marketing objectives. It serves as a tool for the organizations to measure their performance in the fields of Product, Place, Price and Promotion, because it is generally seen that companies meeting their objectives in these fields are more profitable and solvent than companies that don’t. The production which an organization made is classified into two categories, tangible and not tangible. Tangible items refer to the physical products which companies produce by their standardized or customized procedures, similarly the intangible items are the services that companies produces. Products and services can’t set apart, yet there is a strong relationship between them but the intensity of the products or services or the ratio of specialization in giving products and services can vary. Keeping the above theme in view we refer ACNielsen AFTAB as a Service Oriented Company which facilitates the different clients with the latest and prior knowledge of the market and prospects they need. For that reason the marketing mix for the services oriented company will be slightly different with manufacturing concerns. Marketing mix can be defined as“Marketing Mix is the set of marketing tools that the company uses to pursue its marketing objectives in the target market”. Range of services In order to fulfill clients marketing information needs ACNielsen AFTAB offers a whole range of custom designed as well as syndicated research service. We at ACNielsen AFTAB offer following specialization areas in the marketing research. We therefore, will discuss the services of ACNielsen AFTAB in the product section. PRODUCT “The product is defined as the company’s tangible offer to the market, which includes the product quality, design, features, branding and Packaging services are intangible products offered to the consumers”. ACNielsen AFTAB is providing the “Marketing Research” services to its clients; these services can be classified into three categories. Qualitative Research Quantitative Research Retail Measurement Service These services are discussed below in prior detail. Customized Research Customized research is the most common type of research activity handled by ACNielsen AFTAB. In its scope and methodology is worked out specifically to cater to the needs of particular client. Broadly, we can say the customized research done at ACNielsen AFTAB includes almost every type and has done to the quality of excellence. We at ACNielsen AFTAB proudly quote that we are capable of handling any type of consumer research to the best satisfaction our clients. Retail Measurement Services (Retail Audit) Retail audit as a marketing research technique was developed in mid thirties in the United States of America. Retail audits are currently being carried out by various research companies in many developed and developing countries of the world using an almost standardized methodology. Retail audit is a quantitative survey technique aimed at establishing and tracking and ACNielsen AFTAB is the monopolist in this field in the country Market share of competing brands in selected product categories Market size, expressed in some common unit e.g. Kgs. Liters, Tonnnes, etc Comparative distribution coverage of competing brands with shops in stock , out of stocks and not handling Stocks at retail level with number of days the stock would last Average retail selling prices Purchases made y the retailers. Customized Research ACNielsen AFTAB aims to help solving clients marketing problems and reducing their business risks by providing in formed interpretation of actionable research findings. Qualified and experienced researches executives prepare tailor made research design and stat of the art survey instrument. Our nation wide network of experienced field investigators is ready to undertake all kinds of surveys involving any type of respondents. A fully quipped data processing department transforms the raw data into meaningful land actionable research finds. We broadly categorize customized research into two sub categories Quantitative research Qualitative research Ongoing bus surveys Quantitative Research One of the very important techniques in the marketing research is the quantitative research by the virtue of which we obtain the finding in numbers about a certain research objective and can truly associate these results with a certain target audience. We can quantitatively analyze these findings using various statistical tools, by generating tables and applying various analytical techniques. Qualitative Research The essence of qualitative research is that it is diagnostic and it is impressionistic rather than conclusive, it probes rather than counts. For its findings, it cannot produce statistical evidence based on probability sampling. But qualitative research is able to provide unique insights to inspire and guide the development of concept research and advertising pre-testing. Keeping in mind the importance f this research, ACNielsen AFTAB has a full service qualitative research department with experienced in house moderators both males and females. In addition to this we can arrange regional language moderation. Ongoing Omnibus Surveys ACNielsen AFTAB has developed its expertise in the fields of ongoing surveys, for obtaining data more speedily an economically, names as omnibus surveys. An omnibus surveys consist of a series of short questionnaires on behalf of different clients, administered on a specific panel of respondents representing a certain segment of population. In order to understand these techniques in a better way we have provide in depth explanation of quantitative, qualitative research and the omnibus surveys on the subsequent pages. Quantitative Research We have our expertise in this department of the research as well and our setup entitles us to perform all the activities in house. We have a panel of experienced statisticians, data processors and analysts who give their input as and when required. We have number of executives working I this department who give their input in the designing of the fieldwork tools and methodology. Furthermore, they coordinate all the activities from preparation and execution of field work to editing, coding punching and data processing. We have a full fledged fieldwork and quality control departments which are responsible for the execution and quality of their respective activities. Below are the main types of researches that we have been handling and claim to have. Knowledge, Attitude and Practices (KAP) Studies There are many instances when we need to know the awareness, buying and using habits of general public about social products, being the largest company we have had the opportunity of handing quiet a lot of projects in the social sector related to these kinds of studies. We have done studies for a wide range of objectives like for contraceptive methods, nutritional supplements, for general understanding of married males and females towards lie and many more projects with similar objectives. Employee Satisfaction Survey Many times the corporate sector itself seeks our help in order to know the problems pertaining to the employee satisfaction. We have conducted employee satisfaction surveys for a number of clients. Opinion Polls One of the most rapidly emerging types of quantitative researches are the opinion polls about various social political issues prevalent in the societies. For that last few years we have consistently been conducting researches that fall in this category. We have done opinion polls for clients like Gallop USA, PSRA, PARC Dubai, USIA, NDI/IRI, Sydat Hyder and a lot of other international and national agencies. Desk Researches Another very important and interesting category of the quantitative research is the desk research. Through one to one informal interviews and the already existing publicly available data, we try to extract the required information. Here it is important to mention that conducting desk researches is extremely technical and difficult task however we have been successfully handling these kind of researches conducted through our experienced executives and reliable corporate relations, e have conducted quiet a few desk researches for the electrical households durables, like machines, caustic soda, computer and accessories and few other topics. Central Location/ Blind Testing For the introductory products I particular and for already existing products we at times need to conduct the CLT. The respondents are recruited on a certain criteria and are brought to a central location. They are offered to test the product on that location and are interviewed right after the product testing to have their most recent and spontaneous responses. For blind testing the product brand is not disclosed and the respondent has to give his views for the contents of that product only without being influenced by the brand name. Very usually we conduct CLT for the fast moving consumer goods category; however we have also conducted this CLT for foods as well as for automobile sector. Mystery Client Surveys At times we need to test the quality of the services provider without letting him now about any activity like this. For that matter we hire mystery shoppers who disguise as the actual customer of that particular provider and observe the quality of services provided by him/her. We conduct these surveys quite often and for a number of sectors ranging from food to nutrition to health providers and chemists. Exit Interviews Exit interviews are conducted in order to know the most recent feed back of the true and actual users of a specific customer right after completing the task and existing the provider outlet. This is also done because it is easy to reach the target audience at the exit of specific outlet instead of moving from home to home and finding these respondents.
Qualitative Research Human behavior, being the reflection of a person’s attitude, eruptions, beliefs, inner desires and dealings, is rapidly gaining importance as a major element of marketing research. The quantitative techniques of marketing research often fail to capture the true essence of the above components of human behavior. When it comes to understand peoples feelings about some aspects of buying behavior, a more subtle approach are needed that direct questioning. The greater awareness by marketing researchers of the importance of more subtle forms of investigation has encouraged the use of some of the techniques applied in psychology and sociology. Qualitative research has, thus, become an important and very useful component of marketing research. We are well versed in use and analysis projective and enabling techniques, of all types, visual, verbal and creative. The basic techniques of qualitative research include depth interviews and focus group discussion. ACNielsen AFTAB offers both these types of qualitative research. In Depth Interviews Depth interviews are non-directive interviews in which the respondent is encouraged to talk about the subject matter rather that to answer “Yes” or “No” to specific questions. The interviewer has list of points which the interview should cover and the conversation is guided, without directly i8nfluencing by formal questioning, so that all principal points are covered adequately. The analysis and interpretation of depth interviews require expert and objective attention. ACNielsen AFTAB has the expertise and manpower, both in house, as well as in the shape of expert associates, who can handle depth interviews to the best satisfaction of the others.
Focus Group Discussions (FGDs) While depth interviews are concerned with the study of one individual, the focus group discussions study interaction of group members, through free exchange of ideas, beliefs, and emotions, which helps to form the general opinion of people sharing common interests and responsibilities. Focus group discussion are the most prevalent form of qualitative research in most parts of the world in a typical FGD setting, a small group of around 8 persons belonging to a particular segment of society, selected according to a pre-defined criteria, is assembled at a location, to air their views and ideas about a pre defined topic which is generally not knows to the participants before the start of the FGD. The discussion leader, who usually has some psychological training in addition to marketing research expertise, acts as a moderator. The group is encouraged to conversation within the boundaries of discussion guide, which sets out the main areas of the subjects to be covered. In case of advertising pre testing, a commercial, in its finished or semi finished form, is shown to the participants and the subsequent discussion revolves around various aspects of that commercial. The analyses of focus group discussion captures the range of impressions and observations and interprets them in light of possible hypothesis for further testing the underlying assumption usually is that people belonging to certain segment of society and having similar socio- background would have a certain similarity of views and ideas too. Therefore, the group represents the socio-economic segment that it is selected from. A focus group discussion, and for that matter, any qualitative research should not be viewed as substitute to the large scale quantitative survey. Focus groups discussions are often recorded on tape, with full knowledge of the participants, for later analysis. If the group venue is equipped with one way mirror and audio facility, the clients’ representative can watch and listen to the group proceedings while sitting on the other side of the one way mirror. ACNielsen AFTAB has fully equipped FGD rooms in Karachi as well as in Lahore where a number of FGDs on various topics have been conducted successfully, to the best satisfaction of local and overseas clients. Highly experienced male and female group moderators are available to handle any qualitative research assignment. Extended Groups We conduct 90 minutes standard FGDs as well as 2 to 2.5 hours extended focus groups depending on the objectives of the client. Normally when we have to cover more objectives and or have to use more projective and enabling techniques we need much more time to accomplish all the goals. Paired Interviews As the name suggests, paired interviews are conducted with two people at a time. There are two main reasons of use of this technique. First, because we need t to talk about the sensitive topics and by interviewing two friends together, it is easier for them to discuss the topic while discussing with each other. Second, is that we require focus group discussion but 7 to 8 respondents are not easily available at a certain time. So we conduct paired interviews with two respondents at a time and extract the information through their discussion with the moderator. Ongoing Omnibus Surveys An omnibus survey consists of a series of short questionnaires on behalf of different clients, administered on a specific panel of respondents representing a certain segment pf population. Survey of the specific panels is continuously in operation on a periodic basis but the extent of information sough varies each period depending upon the mix of various client specific questions inserted by different clients in a certain period. An omnibus survey is a quick and cost effective method of collecting information. Quick, because the sample panel of respondents is already in place and the agency resources are already geared to carry out the survey. Cost effective, because the clients are sharing the cost of the survey. Omnibus panel usually comprise of a sufficiently large sample size and an ad-hoc survey, therefore, omnibus survey offer a larger coverage of respondents at an extremely low cost. ACNielsen AFTAB’s omnibus surveys have following characteristics Geographical coverage Karachi Lahore Rawalpindi/ Islamabad Faisalabad Multan Gujranwala Peshawar Quetta Hyderabad Sukkur Target respondents & sample size Panel-1 Urban Housewives 1000 Panel-2 Urban Male Adults 1000 Panel-3 Urban Female Adults 1000 All seven socio-economic classes A1, A2, B, C, D, E1, and E2 are covered in each panel.
Methodology face to face interviews are conducted using a standard questionnaire a replicated panel of respondents is selected for each round of field work Sectors of Customized Research ACNielsen AFTAB has a board experience of working in wide range of sectors. Below is a brief explanation of some of the important sectors for which the agency has been providing its services. Social Marketing Researches In addition to the hard core marketing research services ACNielsen AFTAB has developed an additional expertise, which has become one of the most important segments for our agency, in the field of social marketing research by virtue of handling studies on the social topics such as population planning, prevalence and use of contraceptives, rumors and misconceptions about contraception, mother and child health, breast feeding and infant nutrition, and a whole range of other such studies. Political Surveys Another sector that has emerged as an important one within the last one year is of the political surveys. We have observed that the world has seen many changes in the socio political scenario and these changes have drastically effected our country as Pakistan has been the up front nation in the recent was against terrorism and has emerged as one of the most important nations on the world. Simultaneously, Pakistan has internally been passing through an era of political instability. Therefore, there are many agencies whether local or international who want to study the political systems existent in the country. For that matter, we have quite a number of studies on our credit like surveys on Post September 11 attacks on USA, war against terrorism, about the existing political systems. Media Researches The role of mass media as the all important vehicle for mass communication can hardly be over emphasized introduction of private TV channels, the satellite and the cable TV has provided a range of choices to the viewers who can enjoy the privilege of channel switching through their fingertips. For advertisers, it has caused a dilemma of how to rationally allocate their advertising budgets to get the maximum mileage. Media research is, therefore, fast becoming an important area of marketing research in Pakistan. Media habits surveys are periodically conducted by AFTAB. Very recently a mega media habits survey covering 116 cities throughout urban Pakistan has been completed. Foods and Beverage Researches Players in the food and beverage industry in Pakistan face still competition fro more another. Strong decisions backed up by verifiable research to keep a pulse on the changing conditions of the market are required. ACNielsen, a leading marketing research company offers this pulse thought both qualitative and quantitative research. Quantitative research for foods and beverage will consist of home usage tests, central location tests, omnibus, usage and attitude tests, qualitative on the other hand will bring in focus discussion groups. Health and Pharmaceutical Researches ACNielsen AFTAB has been working for hits sector for quite sometime now. We have been conducting various researches like knowledge, attitudes, and practices, mystery client surveys, and exit interview studies for nutritional supplements, and other health related issues. We have also conducted employee and patient satisfactions surveys for hospitals. For pharmaceutical sector, however we have been conducting doctor’s surrey for various clients like MSD, Scherring, Otsuka, GSK and some others and have conducted around 25 projects within the last couple of years. During these surveys we have interviewed Oncologists, Orthopedics, chest physicians, and Gynecologists etc. we developed our sampling frame by using the database provided by Pakistan Medical and Dental Association. It may be noted that conducting interviews with the specialized doctors is an extremely technical task yet we have been able to successfully complete these surveys. Not only have this, looking at our expertise a couple of very valued clients offered us a yearly contract with them as their sole researching agency. Telecommunication and IT Researches The telecommunication sectors include the following broader categories: Mobile phone manufacturers Mobile phone cellular services Manufacturers of telephone sets Services provider by telephone service providers We have conducted a wide range of projects covering the above four categories for a number of local and international clients. Our research scope has covered not only face to face interviews but we have also accomplished a number of desk research projects in the same field. We have not only research topics on value added services for mobile phone services providers but also conducted research on market segmentation for usage of Mobilink services and Customer Satisfaction survey for Instaphone. Automotive, Travel and Leisure Researches We at ACNielsen AFTAB have a full fledged automotive and transportation sector to cater the needs of national and international clients. These researches range from corporate image surveys to pack testing, market sizing to purchase behavior, target market profiling to customer satisfaction surveys etc. Trade Researches ACNielsen AFTAB offers both syndicated and custom designed trade researches involving all the major types of traders e.g. General stores, Kiryana stores, departmental stores, medical stores, bakeries, Pan/cigarette/cold drinks shops, etc. ACNielsen AFTAB has the distinct advantage of having a complete listing of all the above types of stores in Urban Pakistan. Such listing is based on a traders census conducted by the company for the purpose of developing a shop panel for the syndicated retail audit service. The listing, nevertheless, provides an excellent sampling frame for conducting any other type of trade researches. Tobacco Researches Tobacco industry is the second largest marketing research user in Pakistan. To keep pace wit he wave of change, tobacco companies of Pakistan look for research information that caters to their specific business needs. Because special problems require specialized solution, ACNA offers its expertise in this regard through its qualitative as well as quantitative research department in areas of consumer research, trade research and product research. Agriculture Research Agriculture which contributes to around 25% of the GDP and feeds around 60% of the total population of Pakistan has always bee a sector of great importance for the marketers. Being a market leader, most of the researches activities in this sector also come to ACNielsen AFTAB which carries agricultural research experts on the panel. ACNA has been conducting a panel study for cotton crop Pesticides for four years in Rural Punjab and Sindh. Recently, the agency ahs conducted a usage and attitude survey for the Rice Crop Protection products in rural localities of Pakistan. Financial Researches ACNielsen AFTAB has been conducting research studies for banks since more that a decade. A whole range of studies such as: mystery shopping, branch location studies, customer satisfaction studies, market sizing and segmentation studies, customer profile studies, new product launch studies, have been conducted. Some of our regular clients are Union Bank, Citibank, Bank Alfalah, HSBC, Prime Bank and Habib Bank Limited etc. Household Durables In this sector we have worked for clients like PEL, Waves and MEMRB. We have done a few desk researches on the market sizing and sharing of various brands in household electronic goods. Personal and Household Care Products ACNielsen AFTAB has been conducting qualitative, quantitative and omnibus researches in this sector for quite some time now. We have been doing research business with companies like Unilever, P&G, Packages, Reckitt Benkzir. We have conducted researches like brand perception study, concept testing, usage and attitude studies, and many quantitative studies in this sector. So these are the wide range of services provided by the company and hence there are lots of services that are much customized in nature. These researches vary from customer to customer.
PRICE Price is considered to be the very critical factor in the marketing mix. The reason is that one has to be profitable on the one hand and also have to bargain with the customers on prices. Loosing target market’s prospects is itself a failure for the organization so in the continuum of the price and target market, organizations have to choose the best alternative so that it may be helpful in the long run of the organization, yet there are number of variables and tools that an organization can pursue while deciding on pricing. At that time taking right pricing method is the key to success. Price can be defined as: “The Price is the amount of money that the customers pay for the products / services. The price involves the cost of all activities that the company undertake to make the product / service available and accessible to the target customers”. ACNielsen AFTAB is in its specifications dealing with customized research, that’s why there aren’t any hard and fast formulas for the calculation of the price. It all depends on the size and volume of the research the client requires. The prices are normally dependent on the sample size of the universe and similarly the frequency of the research is another important factor for price determination. On the other hand the prices for the regular clients may vary from the prices of the clients which require research very often. ACNielsen Aftab is providing the services to its clients according to their specifications. No research Project is in conformity with the other. Vague criteria formulated by ACNielsen Aftab for pricing its clients is as follow Objectives of the clients Size of the study i.e., Ad-hoc or on-going study Sample size Geographical coverage Time required to collect data Cost involved in data collection Nature of the Interviewers to be hired Size of the questionnaire Technicalities involved in study Nature of the respondents interviewers Time spent by executive on Desk Research Market Situation Hence we can say that on the basis of above points, ACNielsen Aftab Charged price to its clients. No break ups i.e. how many amount would spent on questionnaire preparation, in stationary, in transport etc.50% is collected mostly in advance at ACNielsen Aftab. But this may vary from client to client and study to study.
PLACE The place and distribution channel is also in the critical elements and factors of the organizational effectiveness and efficiency. A powerful setup may deteriorate only because of the misallocation of resources or because of poor distribution channels so organizations specifically keep in mind about the place of marketing mix. The conventional distribution of channels is normally distributors, wholesalers, retailers, and other intermediaries. And it depends on the nature of the product that how much or which channel of distribution is most effective for the distribution of goods and services. As far as ACNielsen AFTAB is concerned it uses Zero Level distribution channel. The reason is that it doesn’t require any other party for the disbursement of the research reports. Once the research is made it is directly handed over to its client. So there is no need of intermediaries for the services rendered by ACNielsen AFTAB. ACNielsen Aftab is doing research in ten big cities of Pakistan. Lahore Karachi Islamabad / Rawalpindi Sukkur Faisalabad Multan Gujranwala Peshawar Quetta Hyderabad Similarly in Retail Measurement Services, panels are made and for the research purposes these panels cover 76% of Pakistan under various heads. Facilitate the retail audit the shops are also distributed among various heads. These Shop Panels include: 1,319 shops of the following types General Stores Kiryana Stores Departmental Stores / Super Markets Utility Stores Corner Stores Hotel Sit Down Restaurants Take way snacks Medical stores Bakeries Pan / Cigarette / Cold Drink Shops Geographical Territories ACNielsen Aftab has divided urban Pakistan into the following 14 Market Break Downs (MBDs) for the purpose of reporting Retail Audit data Total Karachi Total Lahore Total Islamabad / Rawalpindi Total Faisalabad Total Multan Total Gujranwala Total Hyderabad Total Urban Punjab Total Urban Sindh Total Urban NWFP Total Urban Balochistan Total Urban rest of Sindh Total Urban rest of Punjab
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PROMOTION Irrespective of that whether the organization is product oriented or the service oriented, it has become necessary for the organization to communicate its idea with its true sense to the target market. Because of its intangibility of services the effective communication is necessary so as to ensure its success in such critical field. The various elements which contribute in the promotion are: Advertising Sales promotion Personal selling Publicity Public Relation Direct Marketing Point of Sales ACNielsen AFTAB being services oriented organization uses several communication mix to reach its target market. ACN mostly use personal contacts, we can say personal selling and its market reputation as a tool for promotion. Advertising is used as a promotional technique but not as much as it should. By keeping in view, my internship experience at ACN, I can say that “Public Relations” is the most effective promotional tools employed by ACNielsen AFTAB.One way of being known to others is that to have participation in high level seminars and conferences which serve as that plate form for effective communication of organizations image and its working. ACNielsen is also following the same strategy.
Holding Seminars ACN holds a seminar each year, in which the people from Marketing Research field are invited. It helps in promoting the ACN’s image in the Research Market. Participation in Seminars ACN has a membership of a large number of Local and International organizations when any of these organizations holds seminar within the country or abroad, ACNielsen participates actively in such accessions In November 1998, The Chief Executive “Mr. Aftab Ahmad”, addressed the “All Pakistan Marketing Conference” organized by “Hamdard Institute of Management Sciences, of Hamdard University”. In this conference, he stressed the Importance of Marketing Research in the eyes of the public. In this way, he also promotes the image of ACN in the eyes of the local and International Companies.
NOTE: The essential material for the financial analysis of ACNielsen Aftab is not provided to us beside our request. To meet the requirement of the report I have done the financial analysis of PIA.
FINANCIAL ANALYSIS
TOOLS OF ANALYSIS
Ratio Analysis
Trend Analysis
Common Size Analysis
BALANCE SHEET AS AT DECEMBER 31, 2001
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED DECEMBER 31, 2001
RATIO ANALYSIS The figures in financial statements do not tell the whole truth. To obtain meaningful information relationship between relevant figures must be examined. For instance; Relationships that help find the liquidity of the business. Relationship that reflect the effectiveness of the financial policies adopted and the potential fund raising ability. Relationships, which help, evaluate the effectiveness of operational policies. To achieve the aim, we undertake Ratio Analysis. Ratios provide the means of showing the relationship, which exists between, figures on the Balance Sheets and Income Statements. The analysis is undertaken to assess important characteristics of business like liquidity, solvency and profitability. A study on these aspects enables drawing conclusions as to financial requirements and capabilities of business units. BALANCE SHEET RATIOS LIQUIDITY RATIOS Liquidity ratios are used to measure a firm’s ability to meet short-term obligations. They compare short-term obligations to short term current) resources available to meet these obligations from these ratios, much insight can be obtained into the present cash solvency of the firm and the firm’s ability to remain solvent in the event of adversity.
CURRENT RATIO Current assets divided by current liabilities. It shows a firm’s ability to cover its current liabilities with its current assets. Current Ratio = Current Assets Current Liabilities Standard For C.R 2:1 Assets liabilities
INTERPRETATION Comparing internally for three year PIA current ratio has gradually decreased from 1999 then there is slightly increase in 2001. This improvement is considered nominal. So we can say that PIA is maintained its bad liquidity position. This gradual decrease is due to gradual incurrent maturities, creditors accused expenses and other liabilities. On the assets since there was a decrease in stores and spaces from 1999 to 2000. Then there is improvement in current assets. Overall, it present management deficiency and co’d less ability to pay its current liabilities. ACID-TEST (QUICK) RATIO Current assets less inventories divided by current liabilities. It shows a firm’s ability to meet current liabilities with its most liquid (quick) assets. Acid-test ratio = Current Assets – inventories Current Liabilities Standard for Quick Ratio 1:1 Assets Liabilities
INTERPRETATION This ratio serves as a supplement; to the current ratio is analyzing liquidity. This ratio concentrates primarily on more liquid current assets cash, marketable securities and receivables in relation to current obligations. PIA’s acid test is gradually decreasing since 1999. And then there is little bit improvement in 2001. The whole situation was a result of change in sale policy and RTD.
FINANCIAL LEVERAGE (DEBT) RATIOS These ratios answered the question. How the firm has financed its assets (sources of finance in % age)? First question is answered by balance sheet leverage ratio. DEBT-TO-EQUITY RATIO Ratio that show the extent to which the firm is financed by debt Debt-to-equity ratio = Total Debt Shareholder’s Equity
INTERPRETATION To assess the extent to which the firms is using borrowed money this ratio is used of capital (owner’s equity). It means that creditors are not providing more loans to the PIA because of losses and loss in shareholder’s equity. The ratio of external finance is consistently declining from 1999 to 2001. DEBT-TO-TOTAL ASSETS RATIO Dividing a firm’s total debt by its total assets derives the debt-to-total assets ratio. Debt-To-Total Ratio = Total debt Total assets
INTERPRETATION This ratio highlights the relative importance of debt financing to the firm by showing the %age of the firm’s assets that are supported by debt finagling. Thus in 1999, 95% of the firm’s assets are financed with debt (of various types). While the remaining 5% of the financing comes from shareholder’s equity. And 2000 108% from financed with debt and now 2001 112% financed with debt. It is due to continuous losses suffered by the company and it is covering the loss through creditor’s fund. Here the financial risk is very high and the cushion of protection afforded the firms creditors are very large. It was not in the favor of the co. LONG TERM CAPITALIZATION Dividing a firm’s total long-term debt by its total capitalization derives long-term capitalization. Long Term Capitalization = Long Terms Debt Total capitalization Total capitalization = Long term Debt and shareholder’s Equity
INTERPRETATION This ratio tells us the relative importance of long-term debt to the capital structure (long term financing of the firm). Where total capitalization represents all long-term and shareholder’s equity. The share of creditors in long term financing is consistently increasing. The mimesis figure of ratio is greater than one (1) because the company is in the situation of coniferous losses.
INCOME STATEMENT AND INCOME STATEMENT / BALANCE SHEET RATIOS COVERAGE RATIOS Ratios that relate the financial charges of a firm to its ability to service, or cover them. One of the most traditional of the coverage ratios is the interest coverage ratio, or times interest earned. INTEREST CHARGES RATIO Earning before interest and taxes divided by interest charges. It indicates a firm’s ability to cover interest charges. Earning before interest and taxes (EBIT) Interest expense
INTERPRETATION This ratio is designed to relate the financial charges of a firm to its ability to serve or cover them. This ratio serves as one measure of the firm ability to meet its interest payment and thus avoid barlosupty. In general, higher the ratio, greater the livelihood that the company could cover its interest payments without difficulty. In 1999 the ratio is (0.16). It means that company has no sufficient income to meet its financial charges. It has very alarming situation in 2000 with ratio (1.21). In 2001, there is little bit improvement to meet the charges. ACTIVITY (PERFORMANCE) RATIOS These ratios, also known as efficiency or turnover ratios. How effectively the firm is using its assets. Some aspects of activity analysis are closely related to liquidity analysis. Activity ratios primarily focus on how effectively the firm is managing two specific assets groups. Receivables and inventories and its total assets, in general. It includes three ratios giving below. RECEIVABLES ACTIVITY The receivable turnover (RT) ratio provides insight into the quality of the firm’s receivables and how successful the firm is in its corrections. This ratio is calculated by dividing receivable into annual credit sales. Receivables Turnover Ratio = Annual not credit Receivables Receivable Turnover Days (RTD) = Days in the year Receivable Turnover
INTERPRETATION Receivable turnover ratio tells us the number of times accounts receivable have been turned over (turned into cash) during the year. The higher the turnover, the shorter the time between the typical sale and cash collection. Since 1999, there is greater fluctuation in this ratio. Upton 2001, it increased too much. This change was due to reduction in receivables. PAYABLE ACTIVITY This ratio tells when firm wants to study its own prompted of payment to suppliers or that of potential credit customer. Payable Turnover Day (PTD) = Days in the year Payable turnover ratio
INTERPRETATION In 1999 the co payable ratio is very low. But it increased in 2000 & 2001. And its payable days are also decreased. INVENTORY ACTIVITY Inventory turnover Ratio (I.T.O.R) = Cost of Goods sold Inventory Inventory Turnover days (ITD) = Days in the year Inventory turnover ratio
INTERPRETATION To determine how effectively the firm is managing inventory and an indication of the liquidity of inventory, this ratio is computed PIA should a some fluctuation in inventory turnover from 1999 to 2000 it increased to 11.80 time but in 2001, it decreased this change was, basically, due to change in inventory turnover is decreasing, which is a good sign for company. Operating Cycle The length of time from the commitment of cash for purchases until the collection of receivables resulting from the sale of goods or services. Operating Cycle = Inventory Turnover Days + Receivable Turnover Days
INTERPRETATION A direct result of both liquidity and efficiency ratios is the concept of firm’s operating cycle. A firm’s operating cycle is the length of time from the commitment of cash for purchases until the collection of receivables resulting from the sale of goods or services. As the length of operating cycle is an important factor in determining a firm’s current assets needs. PIA’s operating cycle shows a fluctuation in 1999, it was high but in 2000, it decreased. This change was due to decrease in receivables as well as in inventory level, which resulted in low RTD and ITD. Although a short operating cycle is considered better for a firm but it does not prove so in case of PIA.
PROFITABILITY RATIOS Profitability ratios are of the types. These showing profitability in ratio to sales and those showing profitability in sedation to investment. Together, these ratios indicate the firms overall effectiveness of operation. PROFITABILITY IN RELATION TO SALES Gross profit (loss) margin = Gross Profit (Loss) x 100 Net Sales Net profit (Loss) Margin = Net Profit (Loss) after taxes x 100 Net Sales
INTERPRETATION Gross profit (Loss) margin ratio tells us the profit of the firms relative to sale, after defecting, the cost of producing the goods. It is a measure of the efficiency of the firm’s operation, as well as indication of how products are precede PIA’s gross profit (loss) margin shows a fluxion but still it is in loss. On 2001 the G.P is positive which shows the little bit improvement. The net profit (loss) margin is a measure of the firm’s profitability of sales after taking account of all expenses and income taxes. This ratio shows the same fluctuation as in case of gross profit margin. Here PIA is bear very high level of loss.
PROFITABILITY IN RELATION TO INVESTMEN TReturn on investment (ROI)= Net profit (Loss) after taxes x 100 Total Assets Return on equity (ROE) = Net profit (Loss) after taxes x 100 Shareholder’s equity
INTERPRETATION ROI reflects profitability on these assets. PIA is maintaining loss on assets. It does not go in its favor. It presents a bad situation ROE us the earning shows very drastic and alarming situation about continuous losses.DU PONT ANALYSIS ROI and the Du Pont approach Earning power = Sales profitability x Assets Efficiency ROI = Net Profit (loss) Margin x total assets turnover N.I after taxes x Net sales Net sales Total assets In 1999 ROI = (5.78) x 0.86 = (4.97)
In 2000 ROI = (13.54) x 1.30 = (13.94) In 2001 ROI = (5.06) x (1.10) = (5.56) ROE and Du pont analysis ROE = Net Total Equity Profit x assists x multiplier Margin turnover Net Profit = After taxes x Net sales x Total assets Net sales Total Assets Shareholder’s Equity On 1999 ROE = (5.78) x 85.61. 18.54 In 2000 ROE = (14.96) x 102.69 x (12.47) In 2001 ROE = (5.08) x (110.16) x (8.17) COMMON SIZE ANALYSIS (Vertical Analysis) BALANCE SHEET
INTERPRETATION Common size analysis express the various component of a balance sheet as % age’s of the total assets of the company. In addition, this can be done for the for the income statement, but here items are related to net sales. The expression of individual financial statement items as %age of totals helps to spot trend with respect to the relative importance of these items over time. To illustrate, common size balance sheet income statement are shown alongside regular statement in table above for PIA. The %age of owner’s equity decreased from 1999 to 2001 that is due to heavy losses. In 2001, there is improvement in redeemable capital. Long-term loans have declining trend. The huge amount is financed by lease in 2001. Current liabilities have increasing trend and decrease in long-term financing. On the assets side, fixed assets and investments have almost same percentages. There is % age decrease in differed cost, which is an improvement. INCOME STATEMENT
In current assets the aircraft for disposal has decreased in 2001. There is improvement in advances, deposits, prepayments, cash balance and other receivables. In income statement there is significant decrease in expenditure from 2000 to 2001. There is also decline in financial charges and other provisions from 2000 to 2001 . The amount of loss carried forward in reduced from 2000 to 2001.
INDEX ANALYSIS (Horizontal Analysis) BALANCE SHEET
INTERPRETATION In index analysis in balance sheet at the side of owner’s equity the share capital and reserves are some in 3 years loss are increased in huge amount in 2000 and some loss decline in 2001 surplus. On revaluation of fixed assets suddenly decreased in 2001. In 2000 redeemable capital decreased and highly increased in 2001. In 2000 long terms loans decreased in 2001= it increased. The cause of the losses in 2000 long term deposits other liabilities decreased after all in 2001 it improved. In current liabilities side in 2000= current maturities increase and in 2001 it decreased. In asset side in 2000 capital work in progress is highly increased and in 2001 suddenly highly decreased. Long-term investment is the same in three years long term advances, long term deposits and other receivables increased in 2000 and decrease in 2001. Deferred cost is also decreased. INCOME STATEMENT
The side of current assets short-term investment is suddenly increased. Other receivable, cash to bank balance is also increased. Income statement side revenue cost to expenditure increased in 2000 and 2001. In 2000 G.P suddenly increased but in 2001 decreased other provisions, adjustments to other income are also decreased. Taxation is also increased. At last net loss in increased.
TREND ANALYSIS
OVERALL ANALYSIS Comparing internally for the three year we can say that PIA is maintained its bad liquid position. PIA’s acid-test ratio is gradually decreasing. In the financial side creditors are not providing more loans to the PIA because of losses and loss in shareholder’s equity. And the financial ratio is very high and the cushion of protection afforded the firm’s creditors is very large. In long term capitalization the numeric figure of ratio is greater than one. Because the company is in the situation of continuous losses. In the case of losses company has no sufficient charges. The company’s activity position is little bit good. In the profit side PIA is bear very high level of loss. PIA is intimating loss on assets. It does not go in as favor. It presents a bad situation. SIX-YEAR SUMMARY
*1998 figures are for July 97-Dec 98 period (18 months).
RATIO ANALYSIS As a comparison of half years ending June 2001 and June 2002 BALANCE SHEET RATIOS LIQUIDITY RATIOS Liquidity ratios are used to measure a firm’s ability to meet short-term obligations. They compare short-term obligations to short term (current) resources available to meet these obligations from these ratios; much insight can be obtained into the present cash solvency of the firm and the firm’s ability to remain solvent in the event of adversity. CURRENT RATIO Current assets divided by current liabilities. It shows a firm’s ability to cover its current liabilities with its current assets. Standard For C.R 2:1
INTERPRETATION Comparing internally for half-year PIA current ratio has gradually increased slightly in 2002, this improvement is considered nominal. So we can say that PIA has maintained its bad liquidity position. This bad position is due to current maturities, creditors, accrued expenses and other liabilities however current liabilities have decreased now. On the assets side since there was a decrease in cash in 2002 then there is slight improvement in stores and spares and in investment. Overall, it presents management deficiency and less ability to pay its current liabilities. ACID-TEST (QUICK) RATIO Current assets less inventories divided by current liabilities. It shows a firm’s ability to meet current liabilities with its most liquid (quick) assets. Acid-test ratio = Current Assets – inventories Current Liabilities Standard for Quick Ratio 1:1 Assets Liabilities
INTERPRETATION This ratio serves as a supplement, to the current ratio in analyzing liquidity. This ratio concentrates primarily on more liquid current assets cash, marketable securities and receivables in relation to current obligations. PIA’s acid test was gradually decreasing since 1999, now it is same on June 2002 as it was on December 2001 the whole situation was a result of change in sale policy and RTD.
FINANCIAL LEVERAGE (DEBT) RATIOS These ratios answered the question. How the firm has financed its assets (sources of finance in % age)? First question is answered by balance sheet leverage ratio. DEBT-TO-EQUITY RATIO Ratio that show the extent to which the firm is financed by debt Debt-to-equity ratio = Total Debt Shareholder’s Equity
INTERPRETATION To assess the extent to which the firms is using borrowed money this ratio is used of capital (owner’s equity). It means that creditors are not providing more loans to the PIA because of losses and loss in shareholder’s equity. The ratio is still bad but because of the profit in this half-year negative equity is reducing and liabilities have also reduced because of the reduction in obligation under finance lease and hire purchase. DEBT-TO-TOTAL ASSETS RATIO Total debt Total assets
INTERPRETATION This ratio highlights the relative importance of debt financing to the firm by showing the %age of the firm’s assets that are supported by debt financing. Thus in 2001 debt is 112% of the assets this position is improving in 2002 and now percentage is 111%, but still it is very bad. It is due to continuous losses suffered by the company and it is covering the loss through creditor’s fund. Here the financial risk is very high and the cushion of protection afforded by the creditors is very large. It is not in the favor of the company. LONG TERM CAPITALIZATION Dividing a firm’s total long-term debt by its total capitalization derives long-term capitalization. Long Terms Debt Total capitalization Total capitalization = Long term Debt and shareholder’s Equity
INTERPRETATION This ratio tells us the relative importance of long-term debt to the capital structure (long term financing of the firm). Where total capitalization represents all long-term and shareholder’s equity. The share of creditors in long term financing was consistently increasing but in this half year it is increasing but still now it is not so good. The figure of ratio is greater than one (1) because the company is in the situation of excessive accumulated losses and heavy burden of debt.
INCOME STATEMENT AND INCOME STATEMENT / BALANCE SHEET RATIOS COVERAGE RATIOS Ratios that relate the financial charges of a firm to its ability to service or cover them. One of the most traditional of the coverage ratios is the interest coverage ratio, or times interest earned ratio. INTEREST CHARGES COVERAGE RATIO Earning before interest and taxes divided by interest charges. It indicates a firm’s ability to cover interest charges. Earning before interest and taxes (EBIT) Interest expense
INTERPRETATION This ratio is designed to relate the financial charges of a firm to its ability to serve or cover them. This ratio serves as one measure of the firm ability to meet its interest payment. In general, higher the ratio the greater the likelihood that the company could cover its interest payments without difficulty. In 2001 the ratio (0.87). it means that company had no sufficient income to meet its financial charges. It had very alarming situation in 2001 but there is good improvement in 2002 that now the company can meet the financial charges. ACTIVITY (PERFORMANCE) RATIOS These ratios are also known as efficiency or turnover ratios. How effectively the firm is using its assets. Some aspects of activity analysis are closely related to liquidity analysis. Activity ratios primarily focus on how effectively the firm is managing two specific assets groups that are receivables, inventories and its total assets, in general. It includes three ratios giving below. RECEIVABLES ACTIVITY The receivable turnover (RT) ratio provides insight into the quality of the firm’s receivables and how successful the firm is in its corrections. This ratio is calculated by dividing receivable into annual credit sales. Receivables Turnover Ratio = Credit sales Receivables Receivable Turnover Days (RTD) = Days in the year Receivable Turnover ratio
INTERPRETATION Receivable turnover ratio tells us the number of times accounts receivable have been turned over (turned into cash) during the year. Higher the turnover the shorter the time between typical sale and cash collection. In 2002 it decreased 0.4 point. This change was due to increase in receivables. PAYABLE ACTIVITY This ratio tells when firm wants to study its own promptness of payment to suppliers or that of potential credit customer. Payable Turnover Ratio = Credit purchases Creditors Payable Turnover Day (PTD) = Days in the year Payable turnover ratio
INTERPRETATION In 2002 payable ratio improved and its payable days have decreased. INVENTORY ACTIVITY Inventory turnover Ratio (I.T.O.R) = Cost of Goods sold Inventory Inventory Turnover days (ITD) = Days in the year Inventory turnover ratio
INTERPRETATION To determine how effectively the firm is managing inventory and an indication is the liquidity of inventory; this ratio is computed for PIA. It showed some fluctuation in inventory turnover from 2001 to 2002 it decreased by 1.30 point in 2002, which is mainly due to decrease in costs. Operating Cycle The length of time from the commitment of cash for purchases until the collection of receivables, resulting from the sale of goods or services Operating Cycle = Inventory Turnover Days + Receivable Turnover Days
INTERPRETATION: A direct result of both liquidity and efficiency ratios is the concept of firm’s operating cycle. A firm’s operating cycle is the length of time from the commitment of cash for purchases until the collection of receivables resulting from the sale of goods or services. As the length of operating cycle is an important factor in determining a firm’s current assets needs. PIA’s operating cycle shows a fluctuation, it increased by 10 days. Short operating cycle is considered better for a fi | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||