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Semester………. 6th
Session………... 2015-18
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Dedication
We would like to dedicate this project to our parents who has given us opportunity to study
here in University of Sahiwal, and to our respected teacher who has given us a chance to
work on this project.
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Contents
Acknowledgement……………………………………………………………………………..4
Introduction ................................................................................................................................ 5
Franchisees:................................................................................................................................ 9
Conclusion: .............................................................................................................................. 15
References ................................................................................................................................ 16
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ACKNOWLEDGEMENT
Working on this report on “Vivo Mobiles” was a source of immense knowledge to us. We are
thankful to Almighty ALLAH “most beneficent and the most Merciful” Who made us able to
complete our given project successfully and for giving us much cooperation and supporting
parents who has given us this opportunity to study here. We acknowledge with a deep sense
of gratitude, the encouragement, inspiration and valuable time received from our faculty
members, our colleagues. We would like to thank Ma’am Sana Tariq for giving us the
confidence and opportunity to prove ourselves.
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Introduction:
Distribution (or place) is one of marketing element in marketing mix and hence designing a
distribution Network for a product is very important aspect for any company’s product. The
success of the channel design will be declared as the product is readily available at ease for
the consumers.
Here we as a group have chosen the VIVO mobile company for doing this assignment. The
company established in 2009 having its foundation in Dongguan, Guangdong. Vivo is one of
the leading mobile communications in the world, it has 14 manufacturing plants throughout
the world and they have 100,876 employees. The company owns R&D centers in Dongguan
and China. Vivo first began making Smartphone’s in China in 2009. We were registered in
over 100 countries and regions worldwide, choosing the path of internationalization and
never looking back. With introducing of the X5 Max, we created the worlds thinnest
Smartphone, demonstrating our commitment’s to becoming an innovator in the industry and
pushing the boundaries of amazing design. Vivo mobile industrialized company plays a
major role in Pakistan and have huge market share than other players. They have started its
process in Pakistan in 2017 and have their offices in major cities like Lahore, Karachi,
Multan, Peshawar, Faisalabad, and Islamabad. They have increased their man power from
850 people to 15000 from the year of 2017 to 2018. And also they have targeting all class of
people by releasing different kind of mobiles with different features. China started mobile
services in 1988 whereas, Pakistan started mobile services in 1995. By 2001 Pakistan
exceeded China’s growth rate in mobile services. This shows how the distribution channels of
the mobile companies working in Pakistan. Here in this report we are trying to bring out the
efficient network of distribution addressed by Vivo in Pakistan.
Vivo Pakistan has promoted Mr. Fraz Malik Khan as Deputy General Manager of its Device
department. The leading technology company Vivo has acknowledged the competent
performance and managerial expertise of Mr. Fraz Khan, to entrust him with these important
responsibilities, to drive the strategic development and planning functions for the world-
renowned brand in Pakistan.
Vivo is a global smartphones manufacturer with production facilities and R&D centers in
China (Dongguan, Shenzhen, Nanjing, Beijing, Hangzhou and Chongqing), India, Indonesia
and the United States (San Diego). Over the years, Vivo has developed smartphones markets,
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with presence in China, India and Southeast Asia (Indonesia, Malaysia, Vietnam, Thailand,
Myanmar and the Philippines). In 2017, Vivo will further expand to regions like Hong Kong,
Macau, Taiwan, Southeast Asia, South Asia as well as the Middle East.
Air-link communications, M&P and inovi Technologies are the official distributor partners
of Vivo mobile in Pakistan.
Tech Sirat & GreenTech is the official distributor partner of Vivo Mobile in Pakistan.
Staff Overview:
Smart Technology:
At Vivo we believe that your technology should understand you, and we’re committed to
being at the forefront of innovation, and continuously providing practical features that make
people’s lives easier. Whether it’s our user friendly, easy to use, Funtouch OS, our original
Smart Wake function, or our camera’s innovative Voice Shoot for convenient voice-activated
snapshots, we believe that it’s the smallest details that make the biggest difference in our
busy lives.
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Working Culture:
Vivo is a warm and welcoming big family with young and aspirating employees. We focus
on actions, not hierarchy. All employees are allowed full freedom and space to develop
themselves.
Corporate Culture:
Vision:
To become a healthier, longer-lasting global corporation.
Core Values:
BENFEN, Integrity, Team Spirit, Superior Quality, Constant Learning, Innovation,
Consumer Orientation.
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Mission:
To Consumers: Provide quality products and superior service.
To Employees: Create and maintain a harmonious, respectful work environment.
To Business Partners: Create a fair, equal cooperative platform with mutual benefits.
To Shareholders: Render above-average returns on investment.
Working Environment:
Our office environment is comfortable with a full range of facilities. From employee cafe
with delicious food and pleasant atmosphere, to spacious basketball court, modern gym, table
tennis room and pool tables, we provide every possible convenience for you to enrich your
life at Vivo.
Achievements of Pakistan:
They have come up with Wi-Fi mobile which is called Vivo communicator in 2018
In 2018 this company has started huge mobile distribution in Pakistan.
Vivo Company has joined with UC browser to launch first Pakistani mobile News.
Vivo manufactures its mobile in Dongguan, Shenzhen, Nanjing, Beijing, Hangzhou and
Chongqing manufacturing plant and then it transfers to Vivo mother depot which is located in
Lahore, Air-link communications, GreenTech will start distributing Vivo product from here
on. Air-link communications, GreenTech takes order from all the distributers in the region
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and then it supply the product to the retailers with the help of RDSS (Re-Distribution
stockiest supplier). RDSS are further divided in to two types based on quantity distributed
and geographic nature as RDSS city and RDSS MD (Micro Distributers), RDSS city caters to
large cities and supply directly to the retailers whereas RDSS MD will supply to its micro
distributers to carter small towns and through them it will be supplied to retailers. The above
mentioned distribution channel structure of Vivo – Air-link communications, GreenTech is
restricted to north and east part of Pakistan. For west and south Pakistan Vivo has developed
its own distribution channel which takes responsibility of transferring handsets to end users
apart from that Vivo also takes responsibilities like recruiting sales force, training and
developing. Stock norms of Vivo- Air-link communications, GreenTech says that how many
days stock should be maintained in each level of distribution in the supply chain which are as,
HCL – 7, RDSS city – 5, RDSS MD – 4 and MD – 3. Anything below this number of days
would be replenished immediately to avoid stock out. The expected target to fulfill the stock
level can be determined by the formula (30/number of working days)* stock norm for that
level. (Handset distribution business — Air-link communications, GreenTech Info, Vivo in
new 5-year deal, 2018)
Franchisees:
Vivo franchised its brand exclusivity in the name of Vivo Priority Dealers. All the outlets
which are under the franchiser should follow certain footfalls of the franchiser’s company.
This would include converting a normal outlet into Vivo Priority Dealer outlet. But the
franchiser will help in visual merchandising and loan for deposits which are refundable.
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MD MD Retailer
Retailer Retailer
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Vivo mother
warehouse
Network operator
Large distributors
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Air-link communications, GreenTech will receive orders from various distributers in the
region, after taking the orders the RDSS will take care of the further flow in the supply chain,
this is how the retailers receive the product.
As the RDSS is divided in to two parts, the RDSS-city will distribute the products directly to
the retailers in the region then, the RDSS-MD will take care of the regions outside the city
and small towns.
Firstly the products will be distributed to the micro distributes and then the micro distributer
will distribute to the retailers in small towns and places outside the city, by this way they are
trying to supply the demanded quantity to smaller towns and remote location.
This is the same format used by Air-link communications, GreenTech in all states of north
and East Pakistan. In the regions where HCL does not operate Vivo outsources some other
regional distribution company and this company holds all the responsibilities to appoint a
sales force and take care of other requirements of the distribution channel. This outsourced
company reports to Vivo’s Area Sales manager. They have Regional Manager’s for north,
south, east and west part of that area, for each part there are three to four Regional sales
manager and one area sales manager per state, the area sales managers are segregated on the
basis of up market and a sales force.
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Sales forces
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1. Vivo had chosen Air-link communications, GreenTech as its distribution partner which is
well known for its largest redistribution points in Pakistan; hence the product delivery
is flawless and
2. The capital, logistics and business information are provided for time to time operation
period which helps the company to improve its operation.
Conclusion:
Finally, our team had found out that the distribution system of VIVO Mobiles is well
designed and properly structured for both CDMA and GSM model handsets in Pakistan. The
company’s distribution system is strong in north & east part of Pakistan as it is taken care by
Air-link communications, GreenTech distribution and also efficient in south and west part of
Pakistan as it is taken care by Vivo itself. The company is planning to increase its market
share by covering up rural market through expanded distribution network. The company is
also planning to come up with micro-finance idea for its handset purchasers. And our
recommendation for the company is to maintain the existing distribution network and to take
measure for filling the time gap between the CDMA & GSM handsets’ product delivery time
to the retailer.
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References:
1. Consumer durables. (n.d.). Retrieved 15 March 2018, from Naukrihub:
http://www.naukrihub.com/Pakistan/consumer-durables/companies-list/top-
players/Vivo/
2. Distribution Agreement for Vivo. (2008). Retrieved 18 March 2018, from Forum
Vivo: http://www.forum.Vivo.com/info/sw.vivo.com/id/674508ed-ab06-40e4-8bc5-
b1189c2b492c/Vivo_PC_connectivity_solution_distribution_agreement.pdf.html
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