THEME OF FINAL QUALIFYING WORK Formation of marketing

THEME OF FINAL QUALIFYING WORK Formation of marketing strategy for increasing competitiveness of the enterprise Executed by: the student of gr. 4 -09 Rahimov E. Sh. Supervisor of studies: Ubajdullaeva L. Sh.

The purpose of the work is formation of the basic directions of marketing strategy for increasing competitiveness of the industrial enterprises According to a research objective in work following problems are solved: • To consider theoretical representations about competitiveness and strategic development of the industrial enterprise in the competitive environment; • To define a marketing role in achievement of competitiveness of the enterprise; • To consider kinds of marketing strategy and methods of their formation; • To make the analysis of tendencies and prospects of development of Open Society ‘ТТZ’; • To prove methodical toolkit of working out of marketing strategy for increasing competitiveness of the industrial enterprise; • To develop elements of marketing strategy for increasing competitiveness of Open Society ‘ТТZ’.

The factors defining competitiveness of the industrial enterprise • • • • • Business reputation and social image of the enterprise; The product concept on which enterprise activity is based; Quality of a product, its conformity to world level; Diversification degree of industrial-economic activities, a variety of the nomenclature of let out products; Total market share of the main kinds of business; Availability of the capital and monetary streams of the enterprise; Financial stability; Possibilities of research and design base on working out of new products (the budget, number of experts, equipment means and work subjects, as the total characteristic - efficiency of research and development); Flexibility and capacity of the industrial base characterising possibility of operative transition of the enterprise on release of new products and escalating volumes of their release (number of workers, equipment a fixed capital, their present and efficiency of use, structure of costs and its dynamics depending on economy display on scale of manufacture and effect of training); Financing various projects of the enterprise, both from own, and at the expense of involved means; The price policy of the enterprise characterising cost prices taking into account possible discounts or margins; Frequency and depth of spent marketing researches, their budget; The preselling preparation raising possibility of the enterprise to involve and keep consumers at the expense of deeper satisfaction of their requirements; Efficiency of sale concerning used channels of distribution, a sale geographic distribution; Sale stimulation (workers of marketing services of the enterprise, trading organisations and consumers); Scales and quality of advertising activity; Level of after-sale service; The policy of the enterprise in an environment, ability characterising it effectively to operate the relations with the state authorities, public organisations, the press, the population; Quality of management; Corporate culture and motivation of employees.

The concept of management of the industrial enterprise competitiveness Definition of the market purposes of the enterprise Factors of the external environment Factors of the internal environment Choice of the purposes The basic management methods competitiveness of the enterprise • Perfection of marketing researches: potential possibilities of the enterprise and competitors; degrees of satisfaction of requirements of the market the enterprise and competitors; results of activity of the enterprise and competitors • Quantitative estimation and the analysis of level of competitiveness of the enterprise and competitors • Forecasting competitiveness level of the enterprise and competitors, working out of specifications of competitiveness Working out of organizational-economic methods of support of management by competitiveness of the enterprise • Activation of investment and innovative activity • Perfection of a control system by the personnel and labor motivation • Enterprise modernisation • Choice of competitive strategy of development • Competitiveness increase, introduction of control systems by quality and their certification • The complex approach to diversification and to manufacture planning • Reorganisation of system of the account and the analysis of expenses • Perfection of marketing orientation, strengthening of marketing service • Perfection of financial management • Working out of the actions directed on an effective utilisation industrial and financial resources • Perfection of a supply with information of management by competitiveness of the enterprise • Achievements of unity of all links and managerial processes in external and enterprise internal policy Realisation of actions to increase competitiveness, updating of the purposes and development strategy • Delivery of tasks to enterprise divisions on carrying out of concrete actions concerning increase of competitiveness and their performance • Preparation of administrative decisions on updating of the purposes and competitive strategy of development of the enterprise

2) Strategy «throwing down a challenge» - are characteristic for the firms which are not taking the dominating position: • the Frontal attack. Assumes use against the competitor of the same means which that applies, not troubling itself search of its weak places. • Flank attack provides struggle against the leader on that strategic direction where it is weak or badly protected. 3) Strategy «following the leader» . «Following the leader» is a competitor with a small share of the market which chooses adaptive behaviour, conforming the decisions with decisions of competitors. There are four main features of strategy of effectively operating companies with a small share of the market: creative segmentation of the market, a research and development effective utilisation to remain small, the strong head. 4) Strategy of the expert. The expert is interested only in one or several segments, instead of the market as a whole. 1) Strategy of the leader. The Firm-leader has the following set of strategy at the order. • Expansion of primary demand. The purpose - to find out new consumers of the goods, to propagandise new applications of the existing goods or to increase single consumption of the goods. • Defensive strategy. The purpose to protect the share of the market, counteracting the most dangerous competitors. • Offensive strategy. The purpose to raise profitability at the expense of as much as possible wide use of effect of experience. • Strategy of demarketing assumes reduction of the share of the market to avoid charges in monopolism or quasi monopolism.

The analysis of the basic productive and economic indicators of Open Society ‘ТТZ’ for 2011 – 2012 Name of indicator Production produced, num. : -tractors -trailers Production produced, mln sums Sales volume, mln. sums export, thousand USD Other incomes, mln. sums Total expenses, mln. sums 2011 1598 1737 64 455. 5 72 240. 2 6360. 1 13 022. 7 92 764. 4 Name of indicator Common profitability Profit margin Return on fixed assets Return on common equity Coefficient of working assets Coefficient of capital turn Coefficient of capacity Coefficient of general liquidity Coefficient of liquidity Years 2012 1545 1159 84 287. 8 85 605. 9 3 413. 4 14 000. 0 103 661. 3 norm >0 >0 >1, 0 >0, 6 >1, 5 Varience of 2012 to 2011 в % - /+ 96. 7 66. 7 130. 8 118. 5 53. 7 107. 5 111. 7 2010 -0, 0054 -0, 007 -0, 139 -0, 190 0, 613 1, 639 1, 448 1, 597 1, 448 -53 -578 19832. 3 13365. 7 -2946. 7 977. 3 10896. 9 2011 -0, 052 -0, 124 -0, 157 -0, 223 0, 468 1, 514 1, 311 1, 447 1, 311 2012 -0, 027 -0, 085 -0, 130 -0, 252 0, 609 2, 754 1, 149 1, 284 1, 149

Prospects of development of Open Society ‘TTZ’ in the agricultural engineering market The basic indicators of agricultural sector perspective commodity markets of production of Open Society ‘ТТZ’ Growth of agricultural production Turkmenistan 72 Azerbaijan 57 Tadjikistan 57 Kazahstan 56 Kirgzstan 93 Agricultural lands % 70, 15% of territory 57, 57%of territory 30, 4% of territory 76, 9% of territory 56, 02% of territory Agricultural lands sq kms Agricultural hardware tractors Permanent croplands Croplands % 329660 kms 50. 000 1695 thous. ga 4, 68% arae of land 47586 kms 30. 140 1907 thous. ga 22, 3% area of land 42550 kms 22. 162 860 thous. ga 6, 64% area of land 2075980 sqkms 50. 000 21671 thous. ga 8, 28% area of land 107450 kms 21. 921 1435 thous. ga 6, 69% area of land 2200000 ga 72 thous tonn 3, 302. 1 kg / ga 400 thous. tonn 700 125, 8% 1843200 ga 57 thous. tonn 2, 735. 8 kg / ga 124, 5% 930000 ga 57 thous. tonn 2, 357. 2 kg / ga 149, 3% 22364000 ga 56 thous. tonn 1, 019. 8 kg / ga 425 thous. tonn 450 103, 1% 1284000 ga 93 thous. tonns 3, 303. 4 kg / ga 111, 8% 20, 2 kg 97, 9% 62, 2 kg 131% 33% 117 thous. tonn cotton, corn, cattle 29, 5 50. 000 5000 1, 1 121, 1% 26, 2% 92 thous. tonn 30. 093 15, 8 30093 2000 800 10, 5 kg 145, 8% 33, 1% 36 thous. tonn 34, 9 30000 700 1, 7 kg 103, 1% 17, 3% 740 thous. tonn 49. 652 7, 3 49659 5000 1000 25, 1% 88, 6% 25, 1 187 thous. tonn 17, 7 25434 600 Croplands hectare Crop production Crop capacity kg/hectare Export of cotton Cotton production Index of agricultural production Use of fertilizers Index of manufacture Labor share Meat production Products Tractor concentration Tractors Demand of agriculture machines Volume of possible export

Demand in tractor hardware in the Republic of Uzbekistan Regions Universal tractors ТТZ 80. 11 Universal tractors ТТZ 80. 10 Tractor trailers 2 ПТС-4793 А-03 А Demand, num Need, num Purchase possbility, num On own account including: leasing By bank credits 32 299 1 821 1 315 10 1 007 298 41 722 6 224 389 - 291 98 52 178 15 015 731 5 349 377 Structure of pricing at Open Society "ТТЗ" and foreign manufacturers, % from the final price

SWOT - analysis on Open Society ‘TTZ’ STRENGTHS Considerable share of the market High-skilled personnel WEAKNESSES Weak image of a brand Not enough active economic and marketing strategy Use of raw materials and poor quality materials Absence of a direct competition – Low level of distribution on manufactures of a complex of cars for internal and a foreign market clap cultivation Presence of preferential crediting of Poorly developed network of the annual of 7 -14 %. technical service Is under the state control Conformity to national agroclimatic conditions The out-of-date industrial equipment and "know-how" Conformity to requirements of national system of standardization and technical regulation Rather low cost in service and operation, maintainability The old lineup mismatching the western samples - Low level of introduction of innovations in manufacture Not conformity of quality to the goods price - Not effective interaction of structures, departments, absence of an intrafactory computerisation - Not effective policy of resource-saving POSSIBILITIES THREATS Actual monopoly in the Republic Uzbekistan market Potential of development of export, state support at an exit on foreign markets Import share Creation of new more modernised and qualitative tractors Occurrence on the market of competitors, development of the assembly foreign enterprises in the country Strengthening of positions on fastgrowing emerging markets on clap cultivation Weakening of positions of competitors Sharp increase in inflation, economic instability Reduction of the state support Change of requirements of the international technologies tractor engineering and as a whole agricultural engineering, transition to manufacture of new harmless engines Use of new "know-how" will allow to Change of taste and preferences of consumers create the better and modernised cars The further improvement of Competition strengthening conditions of consumer crediting Transition to market pricing Risk of non-delivery or delivery of poor-quality accessories Development of the assembly enterprises Risk of non-delivery or delivery of poor-quality of foreign manufacturers will result in accessories. Introduction by the countriesdevelopment of manufacture of consumers of the Uzbek agricultural machinery of accessories and localisation in Uzbekistan a protectionism, introduction of the customs duties on imported production Increase in volume of monetary base of the enterprise - -

Morphological model of formation of production competitiveness of Open Society ‘ТТZ’ by criterion of costs minimisation Parametre Improvement of quality Designation P 11. . P 31 Price formation P 1 2…. P 42 Price strategy P 13. . P 53 Formation of marketing communications P 14…. P 44 Advancement and distribution of the goods P 15…. P 35 Maintenance of image of the goods and the manufacturer P 16. . P 56 Processing and using waste of manufactures P 17…. P 27 Value of parametre ‘Know-how’ Improvement of work and perfection management quality Decrease of industrial Depreciation of Decrease Increase of volume costs raw materials of manufactures realisation costs Decrease in Discounts Creation of effective The functional manufacturing in taking into financial tools for discount to costs distributio account sale in domestic consumers trade sphere n system a manufacture place Advertising Propagation Direct The internet-marketing Stimulation of consumers Stimulation to Personnel stimulation distribution sphere Low cost of operation Commodity Quality of Reliability and Convenient of the goods assortment production stability of ways of suppliers payments Processing of a waste The ecological factor Improvement of product quality

Results of parametres estimation Parametre 1. Quality improvement 2. Price forming 3. Price strategy 4. Formation of marketing communication 5. Goods advancement 6. Maintenance of image of the goods and the manufacturer 7. Processing and use of an industrial waste p 1 i 0, 3 0, 4 0, 2 p 2 i 0, 5 0, 1 0, 2 0, 1 0, 4 0, 2 p 3 i 0, 2 0, 1 0, 4 0, 3 p 4 i p 5 i 0, 4 0, 2 0, 3 0, 1 0, 2 0, 8 - - - By the chosen criterion of minimisation of costs an optimum variant is p 21, p 42, p 13, p 34, p 25, p 36, p 27, i. e. for increase competitiveness of the investigated enterprise it is necessary to realise following directions: • In the field of quality improvement special attention on use of new progressive "know-how" that will allow to create the better and modernised cars; • In the course of formation of the price of products to concentrate attention to its decrease by increase in volumes of manufacture; • Actively apply decrease principles manufacturing costs at realisation of price strategy; • By working out of marketing communications give the big attention to direct marketing; • As the basic method of advancement of the goods to use stimulation of retail sphere of sales; • With a view of increase of image of the goods and the manufacturer to raise quality of production • For the decision of a problem of processing of an industrial waste it is necessary to carry out processing of a waste in recycling

Commissioning plasma сutting with ‘Art plasma’ Working costs The name of indicators 1. Wages of attendants: The basic, sums/year additional(% to the basic) The sum of an additional z/payment, sum. /year The sum of the basic and additional z/payment, sum. /year Deductions on insurance (in % from the basic) Total expenses for a wages, sum. /year 2. Depreciation charges: -Balance cost -Norm of amortisation -Annual amortization deductions 3. Expenses for repair, sum. /year 4. Expenses for the electric power, sum. /year 5. Expenses for auxiliary materials, sum. /year 6. An overhead charge, sum. /year 7. In total expenses, sum. /year Base variant Design variant 49 275 372, 66 20 9 855 074, 53 59 130 447, 19 34 832 494, 40 20 6 966 498, 89 41 798 993, 29 26 74 504 363, 46 26 52 666 731, 54 5 335 830, 00 8, 2 437 538, 06 277 516, 80 20 598 340, 07 4 119 668, 01 963 521, 94 96 785 400, 00 6 318 547, 00 25 6 579 636, 75 277 516, 80 11 999 033, 05 2 399 806, 61 681 091, 15 74 603 815, 90 Technical and economic indicators The name of indicators 1. Capital investments, sum. 2. Operational expenses, sum. 3. Economic benefit of introduction additional capital investments, sum. 4. A time of recovery of outlay, year Base variant 5 335 830, 00 96 785 400, 00 Design variant 26 318 547, 00 74 542 300, 00 22 181 584, 10 1, 2 Чистый дисконтированный доход проекта, тыс. сум. Инвестиции 0 1 2 3 Всего 26318547 0 0 0 26 318 547 Годы Период Экономический эффект 22 181 584, 10 66 544 752, 30 Коэффициент дисконтирования 1 0, 833333 0, 694444 0, 578704 - Дисконтированная чистая прибыль 0, 00 18 484 652, 68 15 403 867, 99 12 836 571, 45 46 725 092, 11 Чистый дисконтированный доход -26 318 547, 00 -7 833 894, 32 7 569 973, 67 20 406 545, 11

Open Society ‘ТТZ’ advertising plan for 1 st quarter 2014 The advertising purpose/description Acquaintance of consumers with new assortment Target group Means Cost (thousand sum. ) Wholesale clients, as in Uzbekistan, and abroad Catalogue release 4800 January-February, October. November Encouragement of dealers and wholesalers Wholesale clients as in Uzbekistan, and abroad Wholesale and retail clients as in Uzbekistan, and abroad Release of advertising polygraphic production Release of souvenir production with a firm logo 6315 March-April, November. December, November, September To reach preferences marks (Uzbekistan) As the Internet is the world transmission medium of the information and covers the considerable quantity of potential buyers creation of knowledge of mark in the target markets of the CIS will be the purpose, the Near abroad countries Potential retail and wholesale clients Wholesale and retail clients as in Uzbekistan, and abroad Videoclip display on the central channels Placing advertising in the Internet 4940 Monthly 930 Monthly To develop and support a favorable image of the enterprise Wholesale and retail clients as in Uzbekistan, and abroad 2250 April-May, October To stabilise sale, to support recognition of mark Wholesale clients as in Uzbekistan, and abroad Participation in competitions, advertising articles in newspapers and magazines Participation in exhibitions and fairs 3490 Monthly 5255 The period

Calculation of publicity expenses Св/р (а/р) = Тизг t + Тразм t Where Св/р (а/р) - accordingly expenses on videoclip and audioroller, thousand sums. ; Тизг - cost of manufacturing of 1 minute, thousand sum. ; t – duration of a roller; Тразм – cost of placing of 1 minute, thousand sum. Св/р = 500*15/60+800*135/60 = 1925 thousand sum. C(а/р) = 40*20/60+70*480/60 = 575 thousand sum. The general budget of the given advertising company: Бр = With Бр = 1925 + 575 = 2500 thousand sum. Additional goods turnover at the expense of advertising has made: 1 308 827 * 32, 5 % Т = ———— = 425368, 77 thousand sum. 100 % The profit on the additional goods turnover received for the account of carrying out of an advertising campaign has made: 425368, 77 * 18, 4 % П =———————= 78267, 85 thousand sum 100 % Economic benefit has made: Э = 78267, 85 - 16900 = 61367, 85 thousand sum

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