 اسلام علیکم خواتینہ حضرات، وزیین اہسین ویلکمسیو لیکچر نمبر سبن of Brand Management MKT624 at the virtual University of Pakistan. In the last lecture I talked about the strategic management process and all the big five elements that comprise that process. Start with setting a vision for the business and going right through all the phases of setting objectives, crafting a strategy, implementing a strategy and then the achievement of goals at the end. And then seeing to what extent management has been able to fulfill those goals. So that's the management process I talked about. And I also talked about another fact that brand vision flows out of the overall business vision. Why we did talk about that and in the hope that we understand how that brand vision flows out of the overall business vision. Let me talk about a few more topics today which are going to cover why brand vision and what purposes the brand vision fulfills and what are the factors that set the stage. For developing a brand asset management model. Okay having said that the question which really flashes into your mind is and it should be that way. After all the managers have been working for decades and rather centuries on brands and why the brand vision all of a sudden managers know the history of the brands. They know the business they are doing and they also know the way to go. So why is the need for stating in very clear words what a brand vision is and how we envision the brand like you know five years down the line. There are many reasons we have for the brand vision in place. One of the reasons is the change in the structure of management. The very factor I talked about in the first lecture that the hierarchy of marketing department has changed with the induction of brand managers. Brand managers being in place could play their due role and that is the role which really supports the top management starting with the marketing manager and right up to the top person. How to do that. Okay let us talk about it. Before we talking about that let me state that there are authors who think and rightfully so about so many companies globally not referring to our market or our country rather globally that they do not really follow the well structured path of developing a brand vision and then stating the mission. And then going through all the phases of the strategic process. Why I already have talked about that because they think they are pretty well conversant with the history of the brand and the history of the business and therefore being at the helm there is no way that they can go wrong. And even if something does go wrong they have the capabilities and the competencies to set things right but then it may be too late. The approach of management must never be reactionary the approach of management must be proactive meaning you have to preempt many possible bad things that may happen knowing that anything that may go wrong well we have got to set things right even before the process has started. So having said that what happens if you do not really have a brand vision in place the very important implication of the absence of the brand vision is that you may not get support from the relevant departments. In the absence of that approach meaning in the absence of a very well explicitly written vision statement maybe there is a lack of support from the finance department. Maybe there is a lack of support from the production department. The requisite investments may not be coming forward the requisite development of human resource with which we all require in order to make things happen the way that we have envisaged. May get thought it because people are not well trained to carry out the tasks which we have defined. And therefore the vision for the brand takes on an added significance and added dimension. It fulfills three different purposes. One purpose brand vision fulfills is that it extracts the consensus out of management and when I say management meaning top management that also takes into confidence and has to be it has to be that way the middle level of management and automatically all the layers of management get involved into the process. How does a vision extract that consensus or commitment out of the management. Let us talk about that the traditional approach of the setting business plan objectives has been about setting certain percentages meaning talking about certain added percent of the which the company envisages to achieve in the years to come. We might say we need to have another 10% of business growth by the end of next year in order to be viable and profitable and to be able to achieve all the objectives that we envisage and another 10% the year next and another 70% the year next. When I talk about these percentages I'm not saying that the traditional approach has been or still is whimsical it is not that. The management's are pretty well conversant with the history of their business. Like I said earlier they are at the helm they do know where they stand and they do know where they should go in order to reach the destination. What happens under this approaches that because of the added I mean not the traditional approach what happens under the new approaches that the brand managers people like you. Who are sitting at the new added layer in the hierarchy of the marketing department are there to help the top management. And they are there to help them bring about an improvement in the traditional approach which is about like I said setting added percentage points in the years to come for the purpose of achievement. The brand management approach works in the following way. It is here that we start treating brands as assets. You have brand X you have brand Y you have brand Z and all the brand managers within the company offer that matter within the marketing department are responsible for their respective brands. And having said so those brand managers are to come up with objectives for their respective brands. When they come up with objectives it automatically means and it goes without saying that they have done so with the help of a vision. They have a vision in place they know the mission and they have translated the vision and the mission into very specific objectives. Which are quantified with those facts and figures. You approach the top management you bring the top management on to a common platform. Where they discuss all that and either they buy all that or maybe they reject all that or a portion of that keeping the rest as something bought in. Point is that they have now the advantage to say goodbye to the traditional approach and making use or making or extracting benefits out of the professionalism that has been inducted into the company by virtue of your presence. The change which the marketing departments have seen and are seeing by virtue of the presence of brand managers. So what happens that with those facts and figures you convince the top management about the rationale and about the logic that you have behind the facts and figures you are presenting. And that leads to a commitment with the help of that commitment. It takes care of the blame game that has been going on in the companies for as long as we can look back. People stop pointing fingers at each other that this is something I was not supposed to do and that's something which you were supposed to do. But at that time the damage is done or even if a big damage is not done. Things that could have been achieved were a very clear cut vision a mission and a set of values in place. So this is a short indication that a company is not upholding its vision, mission and the right set of values. And if it is the result would be different which I have talked about. You would be all set to go through the process of management in a well structured way and then on your way to achieving the objectives that you set to yourselves. The second purpose a brand vision fulfills is it leads to market research. Why is there a need for market research? It is because no one in the company would like to operate in a vacuum. When I say a vacuum what I mean is when you present facts and figures to top management you have to present those with the help of certain logical findings and those findings come forth only with help of research. Nothing should be left to chances. Things have got to be quantified. You may come up with certain qualitative findings but at least you have a logical basis to talk about that and to convince the management about. So market research is one of the fundamentals which you have to bring into play in order to come up with certain logical conclusions and logical findings so that you can go ahead with good decision making process. It is marketing research which tell us which attributes to change, which new products to introduce, which new segments to cater for and which new geographic areas to go after. It is only because of the findings that we have through the marketing research and research is carried out in the field. We all know that. So it is on the basis of those findings that we can make up decisions about which segments are more attractive in terms of profitability or maybe in terms of volumes. You can get big volumes for one segment and may not get as big volumes from another. You also can concentrate your efforts in one geographic area in relation to the strength of your brand in that particular area. And may reduce your emphasis which you might think was kind of unnecessary or undue in another geographic area which is not as promising as the one you have found out through research to be the most promising. So these are the kind of findings that you have to have before you make your case for the top management for them to make the right decisions about the overall vision of the company. In which your brand vision fits in. The third purpose which the brand vision fulfills is that it mandates knowledge on part of all the stakeholders. Who are the stakeholders? I think we all know that stakeholder is anyone who has stakes in the company. A stakeholder is different from a shareholder. A shareholder is the one who holds shares in the company. You know who is part of the equity that the company has to itself. But a stakeholder is the one who has in one way or the other some interest in the company. Whos destiny is related with the company in one way or the other. So a distributor sitting in the marketplace is one of the stakeholders. A bank that has financed your business is one of the stakeholders. So all the stakeholders must know what is going on in the company. It is very important. Why? When they are in the picture, they are going to support you. And it is this support which you need all the time. When I say you need all the time, it is not only the brand managers. It is all the management who need support from all the stakeholders. And again you see the very point that nobody wants to make decision. By the same token nobody would like to lend their support to you if they are made to make decisions or if they are made to lend their support to you in a vacuum. So the vacuum has got to be fulfilled through certain logical findings and that leads to the fulfillment of the third purpose. I am talking about right now. Meaning mandating knowledge on part of all the stakeholders. And you are the ones from where the process is going to be kicked off and through the top management and through all the stakeholders as to where the company stands today and where the company wants to reach. What are going to be the important points of transit between today and tomorrow where we have to reach. So market research in other words is the best guide in determining the perceived differences among different offerings of the brand or brands by consumers in different segments. That really gives us good knowledge to the which leads to mandating that knowledge in terms of its dissemination to all the stakeholders. Having talked about these three purposes to the which a brand vision fulfills the meaning extracting consensus out of the top management and that leading to market research as a next step and also fulfillment of another purpose and then mandating knowledge on part of all the stakeholders. Let us now take a look at a vision statement which I have prepared hypothetically for you to understand the whole process with an element of I would say a little practicality. I have said this is a hypothetical statement of a company's vision but take it for granted that this hypothetical situation is very close to being quite very practical. So let us take a look at the statement. This statement says the company will enter the fast food category by introducing a range of sandwiches with brand name XYZ. You are clear the company will introduce a range of sandwiches by the name of brand XYZ and the company is going to enter into the category of fast food. The sandwiches will have health food appeal for lunch time in particular and any time later in general. It will price the entries by entries. The statement means all the offerings. It is not going to be just one sandwich. It is going to be a range of sandwiches. That is why it says entries. The word entries or offerings will mean the same. It will price the entries within the consumer friendly range to optimize the number of customers who are professionals within the age bracket of 20 to 50 years. It will attempt to reach its potential customers very close to where they are. We have now talked about the statement. You have seen it. Let us now start analyzing this statement. Let me say a few words in support of it. For this statement in a summarized form saying that the range of sandwiches which the company intends to introduce are going to be well priced. The company is talking about affordability for its target consumers. The company is saying it is going to make sure that the sandwiches should be available to its target market at points which are close to where they are. The company is talking about accessibility and the company is also talking about quality sandwiches. In other words, the company is going to provide their market with quality sandwiches. Three elements which the company is talking about in support of the statement or which are very implicit in the statement are affordability, the factor of quality and the factor of accessibility. When we take a close look at these factors we shall think to ourselves this is a huge task. It takes a lot to be able to produce quality products. The questions which will come to our mind would be while devising strategies, while crafting strategies, different strategies. Do we have the right materials available? The company's answer to this question must have been yes. That is why it is saying it plans to enter. Another question which comes to the mind is does the company have the right human resource? The answer must have been yes. If the company has the right resource the next question is are they well trained? Even if the company knows yes they have that background before they join our company still they have to be further educated in relation to the culture which this company is trying to develop or which this company thinks it must develop. So the process of developing those people will go on and on. Another question which again is a very heavy weight question is of accessibility. Does the company really have the resource to be that quick in providing that accessibility factor to its target market? Is it that the company is going to come up with restaurants all over the place or the company has something else up its sleeve when it comes to providing that kind of service to the customers in order to be quick in its service? Also implicit in this statement is the factor that the company is not only selling a product the company also is selling its service and the service relates to the delivery because the company is talking about accessibility and the company is saying it has to be quick and it has to be very close to where the customers are so what it has up its sleeve is the factor of delivery and we shall talk about that when it comes to the mission and when it comes to the values and when it comes to further elaboration of this statement. I was talking about different components which form this statement in relation to its implications in the marketing area in the operations area and also in the area of service market not only product market but also service market let me state in support of the vision statement another factor the company invisions to start its business from the largest market of the country which of course is Karachi after achieving a certain level of success in that market the company invisions who spread into different geographic areas in terms of the level of potential and promise they offer how the company is going to do all that let us take a look at the brand mission statement the brand mission statement of the company says XYZ's mission is to develop fast food outlets with appealing but economy-driven architectural features from where it can serve its customers through highly trained and motivated crew part of its mission is also to simultaneously develop a team of delivery personnel conversant with the job of delivering food with high efficiency and low operational costs what is this statement says let us try to analyze this now first of all let me say that this statement is very present oriented it might sound like a little future oriented because it says it is going to develop it is going to do this and it is going to do that it is because this company is a new player in the area of fast food and it is just going to start so anything which is at hand and is going to be started has to be taken in the light of the present and not in the light of future so therefore this mission statement is present related and not future related you might start having some kind of confusion that I've been talking about mission relating to present and vision relating to future and therefore I need the feel for clarifying for you that this mission is very much present oriented and not future now this is talking about quite a few things it is talking about the market segment the company is planning to reach it is talking about economy driven restaurants and which automatically means that the prices it is going to offer are going to be consumer friendly which was the part of vision and it was the part of vision because it is going to be translated into financial goals which are going to be achieved not over the next year but also in the years to come this statement also talks about the delivery mechanism the delivery is going to take place not only through the restaurants because the customers are going to walk in by themselves it is also going to take place with the help of the delivery personnel in order to deliver those sandwiches now when we talk of that it automatically means that people have got to be well trained well the statement talks about that and also they have to be motivated just imagine receiving a delivery person who is not really motivated and who has all the looks of an angry man on his face delivering that sandwich to you and it looks to be in a hurry you wouldn't like to either receive the sandwich or even if you have received it you may not like to order it the next time which is the crux of the matter so the statement talks about so many different things and it has to be dissected and analysed in different forms of its components and elements element of the pricing the element of delivery the element of operations the operations have got to be very efficient because only an efficient operation can handle consumers who are walking into the restaurant and the consumers who are going to be served through your delivery personnel and that is why I talked about the combination of two different sets of marketing the product marketing and service marketing so this is a very interesting case in which we are going to talk about not only the product itself but also about the delivery of the mechanism which falls in the domain of service marketing having said that let us now further talk about the implication of the components of the mission statement which is a translation of the vision statement we are talking about the segment which we are going to cover and we are talking about a certain range of pricing that we have in our mind that we are going to test that and after the test has taken place we are also going to see to it the range that we envision to launch in the market gets completed in terms of its launch because it may not be the case that the complete range is going to be launched on the very first day it takes time before you can complete the range which you see in the market doing its job meaning selling so as you have learnt the vision statement and mission statement of this company XYZ some are the whole thing in the area of the target market in the area of the brand differentiation which the vision talks about the brand being the health food how they are going to create that differentiation because we are going to talk that at the relevant time but the company is very much sure and confident that it is going to come up with something which is health food meaning which is different from what you have in the market right now about which people generally complain that this is not so good food I am not here to use the terminology which is used in the market place but to give you an idea of the anger or the display you are off for the consumers so they are not very happy with whatever they get in the market so this company thinks it can really come up with something which is different from the existing offerings in the market and hence is going to have a very attractive appeal for its target market the implication of these statements also the false in the geographic areas it falls in the area of operations it also falls in the area of values which I did not talk about earlier the company does believe that we have in place a set of values which profess which professes integrity of character conscientiousness when it comes to working in the restaurants or in the kitchen for that matter and honesty and so on and so forth now these are the attributes in terms of the human character which we do talk about wherever we are in any field but how do you make sure that people do take on these values this is the subject which falls under the domain of human resource management this being a new company they may not have a very well structured human resource management department so that becomes kind of a challenge for the company as to how to go for the screening process where they are going to have people who already have these values my point is all these implications lead us into various areas of strategies and for each area we have to have a strategy meaning a game plan so that we can get the desired results so that we can translate those game plans into different sets of executions in order to get the results that we have inverses after having talked about the vision the mission and the implication of these two statements let us now take a look at the graphical presentation as to how the company started thinking about segmentation differentiation and how the company has related its pricing strategy with the target segment and the product quality it is very interesting and educative so let us take a look at the graphical illustration we have this figure in front of us and we can see two axes the x axis and the y axis the x axis is price while the y axis is quality price increases from 0 upwards to the right and the quality in qualitative terms increases upwards we have divided x axis into 5 different segments which you might call price segments the first one is between 0 to 25 rupees the other one is from 25 upwards to 45 the third one is between 45 and 80 and the next one 80 and 100 and the fifth one beyond 100 rupees if you look at the dividing lines going upwards along the y axis which is the quality axis you will see at the top of the lines we have competition we have this brand or this company XYZ we have different segments of the market in relation to the pricing we see at the bottom of the axis segment 1 is the low market segment because it is between 0 and 25 well nothing sells at 0 let us talk about the pricing which is in the range of 20 to 25 rupees and we do have roadside cafes roadside stalls because people sell sandwiches at this price range so this is what we call or what the company calls low market segment and the company is not represented there the next segment to the right is what the company calls low mid market segment and this is segment number 2 and this is the price range of 25 and 45 and you can see with the help of the red thick arrow it's all competition company XYZ not have its representation in these two segments then company XYZ takes a heart look into segment number 3 which it calls mid market segment and this mid market segment is between 45 and rupees 80 XYZ has decided not to be represented in this segment for the time being as you can see from the graphical illustration that takes us on to the next segment which is segment 4 and the company calls this segment mid high market segment this is the most vital segment for company XYZ because it is going to have all its action in this segment because it is the target market and this is between rupees 80 and rupees 100 we can see that with the help of the green arrow which tells us that this is the arena or the playing field where company XYZ is going to restrict itself for the time being beyond that there is a segment which you might call the high market segment and you might question why is it that company XYZ is not wanting to get into this segment if not forever at least for the time being I'll come to the answers one by one but the fact remains that XYZ is not going to be represented for the time being in this segment which is beyond 100 rupees now before I explain that let's take a look at the three lines which are parallel with the price line which are not price lines which are quality lines the first line the red one which runs parallel immediately next to the price line meaning x is what company XYZ calls low quality line and this quality line intersects the price lines the two price lines which you see on this diagram is the market price line or in other words market price curve and the other one is the XYZ price curve and this quality line cuts these two price lines at two specific points one point of intersection the first big yellow dot which you see is the competition and this is what the company calls price quality index PQI a terminology which you will see at the top of the lines if you take a look upwards but not for the time being so this is the PQI of competition in the low segment of the market where XYZ does not exist but then it has to have a very good knowledge of the market the way it operates there is no way that this company can ignore this segment it must be fully in the picture if you go a little upwards you will see the blue line and this is what the company calls I mean XYZ calls the mid quality line this line again cuts the true price curves or the price lines at two different points I think the understanding here is very clear if you go further up you will see another line which company XYZ calls top quality line this top quality line is a constant and this company says and rather it states that the quality the best quality which is available on the market at the moment is this quality and this quality line wherever it intersects the two price lines of XYZ and the competition those are the price quality indexes or the respective price quality indexes of XYZ and of the competition so in other words when we take a look at the two yellow dots meaning at the two PQIs one relating to XYZ and other relating to competition we can very easily conclude that the quality of XYZ is the same as the quality offered by the competition at that axis because this line of quality is a constant whereas the price of XYZ is lower than offered by the competition you might also think and rightly so that the red arrow which you can see in the top segment meaning the highest price segment the thick red arrow it does not extends leftwards and XYZ has the whole field to itself where it is going to play well that is the result of the marketing research this is where company XYZ found was a gap and this is the strategic gap which company XYZ is in terms of a very consumer friendly pricing and in terms of very good quality is going to offer isn't this interesting I think it's very interesting this is because of the findings of the research in the marketplace that the company arrived at this conclusion that it must start from this segment which at the moment is relatively empty rather is totally empty there is no player in the market having representation there and therefore the point of attack as we call in the field of marketing the point of attack has got to be right there in segment number 4 and that's the way the company has defined this segment I think it is interesting now the next question the theoretical question which I raised earlier does the company have the competencies and the abilities to deliver all that it is planning and it is envisaging it is not very difficult to say that we are going to be lower priced and yet we shall offer the same quality which is offered by sandwiches or burgers so to say offered at a price or offered within a price range which is higher than to offer the company is convinced yes it can deliver that well if it really can good if it cannot it will change its strategy or do something with the tactics in order to be at par or in order to be in line with the realities of life if the company has gone a little astray at the moment I think this explains this first illustration in pretty much detail to summarize once again let me say once again that this illustration talks about five different price segments and these price segments have very direct correlations with the level of quality which is being offered by these very segments in the marketplace quality is divided into three different levels we have low quality in the marketplace we have mid quality and we have high quality these quality levels are very relative but if you start from the top you can say that the highest level of quality is defined by the best available sandwiches on the market and those best available sandwiches are the ones made available by international companies and therefore that's the kind of the optimal quality if not the best quality that's the optimal quality we have available to our consumers in the market so let us start relating the quality levels with that and by the presence of these two very important elements or the fundamentals in a position to take a very graphical look at this figure in terms of the price quality segments and with the help of that we have defined what a price quality index is خواتین حضرات میرا آپ سے سوال یہ ہے جو already آپ کے ذہن میں بھی ہوگا کہ کیا اس کمپنی X Y Z کو اسی segment number 4 میں پہلے رہا نا چاہیے اور میرے جاتی خیال میں آپ کے ذہن میں جو جواب ہوگا میرے ذہن میں بھی ہے کہ نہیں بالکل نہیں کتا ہی نہیں کمپنی ہمیں ایک کمپنی ہمیں بھی بھی بھی بھی مجھے مجھے بھی بھی بھی بھی بھی بھی بھی بھی بھی بھی اگر کمپنی چوز سیکمن number 4 بھی بھی بھی بھی بھی بھی بھی بھی بھی بھی بھی بھی سقلہ ہی کمپنی قجا❤ ہی سے رہا ہی اور یہ مجھے شکاہی اوانی خطأ بھی بھی بھی不是 مجھے بھی بھی بھی بھی ہمیاں ہمائے بھی بھی بھی بھی بھیhausطرتو ہمینا دن ہمینا دن would be مجھے ہمیں بھی بھی بھی بھی بھی اور آپ چیز کو اور before you go ahead with your moves before you can really plan. ameen implementation has got to get into segment number three. these are downwards and the company also has to getx2 segment number five. which is the top segment and that is a segment where the real competition is going to be faced by this company. اپنی پر برای پرتناروں پر پر باہر ساتھ کرنے کے لئے حکم جو تک جس کی تحرح بìnی ماند ہوتا ہے پاسماہ پیر What's not the vision of the company اپنے اپنی ماند reads to واپنے لئے باری روک ہے گتا ہے اس لئے opportunity لئے بہت سوری لہذا بہت سوری ڈیلنگ ڈائم او ڈوییہ سی تایم او ڈوییہ سی تایم اس لئے بہت سوری ڈائم ڈائم نتہ ہے ٹر Less because you can have certain. Plans that this is a segmentuka the way I'm going to touch like you know the 12 months down the road not before that because we would like to be well prepared in terms of our yeteen n terms of a posture whichå really becomes threatening to the competitorsения and therefore let us consolidate to our base in segmentunkراہزر اپنے ، پہارت tamamا القام بسکتے ہrerdate3 لگن مهمت پر کبماس處 اپنے پھوڑ والا ہوا سکتے�� گا تمkek ہوئن سے میکھوظے Kabul ایک вдفak视پ بع Еще Jia میں جانت درسیüllt طاہ گا کیای اگر اس کوreaming بہت جروسط میکھوپس میں جانتن吧 آپ جانتا 你銼 زیادہ پ Lynch کو کیا Cheer北 کrage canت پاسïب ہوڑی والا رونا نبال ہمھری شم اور بنام Gaz حصتہوں کے بارے میں چاہتے ہیں لیکن چلنے کے توئے اہمیں بلایئے مجھے مہمہ اٹھنےту کے س Policy ایمانوں میں کیا یہ جانتا ہے ایک نصریت کے بارے میں بردیو کے لئے ایک مخلص جاتی ہیں اور ایک ساتھ کو بہت دنیا کی باری اور ایک حلت گوڈک نہیں ہے۔ کیا ہے؟ برائی کے اوں کامنکیی شاہی نہیں ہے کہ جب ترستیقی بھی کارکنے کے ساتھ مجھے کافت ہوتا ہے بھی کارکنے کیا ساتھ مجھے کافت ہوتے ہیں اور کارکنے کیا ساتھ مجھے کافت ہوتا ہے جب بھی کفتی پرانکتے ہیں میں بھی ساتھ بھی جاتا ہے لہذا آپ کو کافت کرنا چاہتے ہیں you all are really primarily referred to as the same brand member which is the same brand.. you all are not part of a brand gir cream enterprise. x Turn you understand the same brand. x Turn aspects are the same brand. x Keep Fun Gross that Kann Ab ин گیگے пам صور کیی ملES because you are او تا مہلس انしゃہ ہے او بہت مرش کے ملی بات黃 وبملیAct. 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