Bekzodjon Oblakulov (1), Sardor Kuvandikov (2)
General Background: The consumer electronics industry in Central Asia is experiencing rapid growth, driven by rising demand for affordable and innovative household technologies. Specific Background: In Uzbekistan, Artel Electronics has emerged since 2011 as a dominant local manufacturer, expanding from gas stoves to a portfolio of over 1,500 products across 33 categories. Knowledge Gap: Despite its strong domestic presence, limited international reach, digital engagement, and reliance on local suppliers constrain its global competitiveness. Aims: This study analyzes Artel’s strategic position through internal and external assessments, SWOT, and BCG matrix, to evaluate its marketing mix in B2B and B2C contexts. Results: Findings reveal that Artel’s success stems from its balance of quality and affordability, robust distribution network, and product diversification, while weaknesses include constrained global presence and insufficient e-commerce penetration. Novelty: Unlike prior analyses, this study integrates PESTEL and BCG perspectives to highlight how Artel can leverage sustainable practices, digital platforms, and international market entry to strengthen its positioning. Implications: The research suggests that adopting eco-friendly innovation, expanding digital channels, and targeting niche global segments will enhance Artel’s competitiveness, ensuring sustainable growth in a highly dynamic global electronics market.
Highlights:
Strong brand recognition and product diversification drive Artel’s market leadership.
Limited international presence and weak digital channels remain key challenges.
Sustainable innovation and global expansion are crucial for future growth.
Keywords: Artel Electronics, Local Business, Business Clients.
Artel Electronics, established in 2011 in Tashkent, Uzbekistan, has rapidly emerged as a leading player in the consumer electronics market. Initially starting with the production of gas stoves, the company has dramatically expanded its product offerings to encompass over 33 categories, including household appliances and smartphones [1].With a commitment to innovation and quality, Artel has not only become a household name in Uzbekistan but has also made significant strides in international markets. Through its robust manufacturing capabilities and sustainable practices, Artel Electronics has played a crucial role in enhancing the local economy, creating job opportunities, and fostering a vibrant electronics sector. The purpose of this article is to conduct an in-depth analysis of Artel Electronics as an organization. This will include an internal analysis to understand the company's strategic focus, core competencies, and key factors for success. Additionally, an external analysis will explore the various macro-environmental factors influencing Artel's business. A SWOT analysis will then be used to identify the company's strengths, weaknesses, opportunities, and threats. Furthermore, the article will assess Artel's product portfolio using the BCG matrix and provide recommendations for improving its marketing mix [2]. Finally, a comparison of Artel's marketing approaches in the B2B and B2C domains will be presented, along with an analysis of its segmentation, targeting, and positioning, strategies.
1. Internal Analysis
Mission: To provide high-quality and innovative household appliances and electronics, enhancing modern living standards and delivering value to customers in Uzbekistan and beyond [3]. Vision: To establish itself as a global leader in the production of household appliances and electronics, focusing on sustainability, innovation, and customer satisfaction.Artel manufactures and supplies a wide range of household appliances and consumer electronics, including:a.Major Appliances: Refrigerators, air conditioners, and washing machines.b.Consumer Electronics: Televisions, sound systems, and microwave ovens.c.Small Appliances: Blenders, irons, toasters, and kitchen gadgets.d.Services: Installation, maintenance, and after-sales support for their products.What business are they in – in terms of consumer benefits?Artel operates in the household appliance and consumer electronics industry with a focus on providing:Reliable and durable solutions for modern home living.Affordable and energy-efficient products for middle-income households.Customer satisfaction through accessibility, quality, and robust after-sales service.What are their key factors for success? Why are they winning in the marketplace?
Bibliography
External Analysis (Macro Environment): What external factors are influencing their business?
2 . Pestel A nalysis
a. Political Factors
In Uzbekistan the government supports local brend and gives them opputunity to grow. Programs for encouraging domestic production and lowering taxes for importing is helping to Artel a lot [4].
b . Economic Factors
Uzbekistan’s expanding economy create opportunity for increasing the number of costumer of Artel.Also,inflation is not high in Uzbekistan which help Artel to control price of its products easy. [5].
c . Social Factors
Artel is adapting its product offering to meet costumer’s desire.Mostly people are divided by 3 categories,high class,middle class, and low class.Therefore, Artel have aroung 33 types of products and their price are different from one another [6].
d . Technological Factors
Nowadays, most people prefare to buy products from apps like Uzum market since it is easy and fast.Artel company added their product to this app. [7] It is advisable from the company to create its own app and places for showing service which would augment brand awareness and increasing loyal costumers.
e. Environmental Factors Artel, one of the leading manufacturers in Uzbekistan, is taking steps towards adopting sustainable manufacturing works.It is creating positive impact on the environment and saves gas and electricity consumption [8].
f . Legal Factors
The company ensures the safety of production and every products are added labels,instructions.Also,most products have free service for 2-3 years [9].
If we talk about our case, Artel is a well-known household brand in Uzbekistan that has been providing high-quality products to consumers for many years in local and international market (See Table 1). [10]
[Table 1. about here]
3. Strengths, Weaknesses, Opportunities, Threats (SWOT) Analysis
a . Strengths
1) Artel has a strong brand recognition in Uzbekistan, due to its long history in the maricet and its reputation for high-quality products. Consumers trust the brand and are more likely to purchase Artel products over those of competitors. [11]
2) Artel offers a wide range of products, including TVs, refrigerators, air conditioners, and other household appliances, which makes it a one-stop-shop for consumers. This wide range of products increases the company's appeal to consumers and provides a competitive advantage.
3) The company has an established distribution network in Uzbekistan, which allows it to reach consumers in both urban and rural areas. The distribution network also helps Artel to reduce costs and increase efficiency in delivering products to consumers.
b . Weaknesses
1) Artel has limited international presence, which limits its ability to compete with international brands in the global market.
2) The company is heavily dependent on local suppliers for raw materials and components. This dependence on local suppliers can lead to supply chain disruptions and delays. in product delivery.[12]
3) Artel has a limited online presence, which restricts its ability to reach a wider audience and increase sales through e-commerce channels.
c . Opportunities
1) The demand for household appliances is growing in Uzbekistan due to an increase in disposable income and urbanization. This presents an opportunity for Artel to expand its product portfolio and increase sales [13].
2) Artel can expand into international markets and increase its revenue by leveraging its reputation for high-quality products.
3) The company can increase its online presence and expand its reach by mvesting in e commerce channels and digital marketing.
d . Threats
1) The household appliance market in Uzbekistan is highly competitive, with both domestic and international brands vying for market share. This can lead to price wars and reduced profit margins [14].
2) Economic instability: As Uzbekistan is a developing country with an unstable economy, which can affect consumer spending and demand for household appliances.
3) Technological advancements can quickly render existing products obsolete, and failure to keep up with new trends can lead to a decline in sales.
The research study used secondary data taken from external internet sources, mainly research studies, online journals, and global marketing and tourism statistics. During the process of work, these sources have been carefully analyzed and concluded in the main parts:
a. service marketing,
b. its importance in developing the industry globally, and how new trends of advertising are being implemented global companies around the world.
1. Analyzing BCG matrix of company
Artelelectronics is leading supplier of home appliances and electrical equipment in market. Artelelectronics uses the BCG matrix to allocate limited resources and investments , achieve business goals and to have competitive advantage among competitors. Artel also gains from alliances and rivalry with other well-known brands, such as SHIVAKI, AVALON, ROYAL, and its partner, VESTA [15].
a . Stars
Products in the Star category have a solid market position and a significant potential for market expansion. These are Artel Electronics' crown jewels, symbolizing the business divisions that will propel the company's expansion in the future. Microwave Ovens (23 types): Owing to their convenience in contemporary kitchens, microwave ovens are a rapidly expanding market.Built-in Stove Cabinets (9 types): Built-in stove cabinets are becoming more popular as homes move toward modern, integrated kitchen designs.
Air Conditioners (45 types): Artel's air conditioners are one of the company's most significant stars due to the growing need for climate control systems.
There are 23 different types of burners, which are necessary in every kitchen due to their consistent demand and the increasing uptake of cutting-edge burner technology .Artel can maintain its market leadership while embracing new trends and consumer preferences by investing in these items.
b . Cash Cows
Products in the Cash Cow category bring in a lot of money because of their well-established market position. The business can finance other divisions because to these products' steady cash flow and cheap investment requirements.
Automatic Washing Machines (22 types): As more and more homes turn to automation, this product category continues to be a steady source of income.
The 35 varieties of vacuum cleaners are a household need that continue to be in high demand because of their practicality in daily cleaning.
TVs (32 types): Because of changing consumer preferences for cutting-edge display technologies, TVs continue to generate significant revenue despite market saturation.
Fridges (62 types): Artel's wide range of models in this category guarantees that it will always be a home essential. 55 different varieties of kitchen plates make up this category, which represents a strong market position for necessary kitchenware.
Semi-Automatic Washing Machines (48 varieties): These devices appeal to consumers on a tight budget, guaranteeing consistent sales in emerging regions. Artel can maintain profitability and finance developments in other domains by concentrating on these goods [16].
c . Question Marks
Products with unclear potential are indicated with question marks. To decide if they can be turned into Stars or if resources need to be reallocated, these need to be carefully assessed. Sandwich makers (one type): A small market that could expand as people's lifestyles change and their need for quick meals rises.
Thermos (1 type): This product has potential in markets where portability and convenience are top concerns, notwithstanding its current limited market share.
There are twelve varieties of little gas stoves, each of which serves a particular purpose but might expand with focused advertising.
Demand for electric grills (one type) may increase as people become more health concerned. Two sorts of scales: As fitness trends increase, there may be a greater need for kitchen and personal scales.
d . Dog
Dog-related products have a small market share and little room for expansion. They may not have a major impact on revenues, but they are useful for brand image or specialized markets.Water heaters (six varieties): Despite their utility, these are very competitive and may not have much room to grow.
One sort of kitchen scale is a small, niche product that has little effect on total sales.Three types of humidifiers are useful in arid conditions, but Artel does not prioritize them.Artel Electronics has positioned itself as a major force in the market for home appliances and electronics. For the management of its wide range of products, the BCG matrix offers a clear road map. Artel can maintain its growth and profitability by giving Stars top priority, making the most of Cash Cows, and choosing Question Marks and Dogs wisely. Artel is well-positioned to hold onto its market leadership and pursue new prospects, especially when combined with its capacity to handle competition from companies like SHIVAKI, AVALON, ROYAL, and VESTA. It can be illustrated below in the table all about BCG matrix of Artel company (See Table 2).
[Table 2 . about here]
Artel is a leading manufacturer of home appliances and electronics in Uzbekistan and Central Asia. The company's marketing mix, or the 4 Ps—Product, Price, Place, and Promotion—reflects its strategic approach to maintaining market leadership and expanding its presence [17].
Product: Artel offers a diverse range of over 20 types of home appliances, including refrigerators, televisions, washing machines, air conditioners, and kitchen stoves. The company emphasizes innovation and quality, producing approximately 1,500 different products under its brand and in collaboration with international labels like Samsung, Shivaki, and Toshiba. This extensive product portfolio caters to various consumer needs and preferences.
Price: Artel focuses on providing high-quality products at affordable prices, ensuring a favorable balance between cost and value. This pricing strategy makes its products accessible to a broad consumer base in Uzbekistan and neighboring countries, contributing to its significant market share in the region.
Place (Distribution): The company has established an extensive distribution network across Uzbekistan and Central Asia, with 11 manufacturing sites and logistical centers. This infrastructure enables efficient production and distribution, ensuring product availability in both urban and rural areas. Artel's products are also exported to 13 countries, including Kazakhstan, Kyrgyzstan, Tajikistan, and Azerbaijan, where it holds substantial market shares in various product categories.
Promotion: Artel employs a comprehensive promotional strategy to enhance brand recognition and consumer engagement. As one of Uzbekistan's most recognizable brands, Artel's products have become integral to many households. The company has also joined initiatives like the United Nations Global Compact to promote sustainable and responsible business practices, enhancing its corporate image and appeal to socially conscious consumers.
Artel Electronics operates in both B2B (business-to-business) and B2C (business-to-consumer) markets, each requiring distinct marketing strategies. Below is a comparative analysis of the two approaches, highlighting key differences in targeting, messaging, and channels.
1. B2B Marketing Approach
a. Targeting
1) Audience: Artel targets businesses such as retailers, distributors, and commercial enterprises that require bulk purchases of electronics and appliances.
2) Niche Focus: The targeting is more niche, focusing on specific industries that need reliable electronic products for their operations, such as hospitality or retail.
b. Messaging
1) Value Proposition: The messaging emphasizes quality, reliability, and cost-effectiveness. Artel highlights the long-term benefits of its products, such as durability and efficiency, which are crucial for businesses looking to minimize operational costs.
2) Relationship Building: B2B marketing often focuses on building long-term relationships and trust, showcasing case studies and testimonials from other businesses to reinforce credibility.
c. Channels
1) Direct Sales: Artel may utilize direct sales teams to engage with potential business clients, providing personalized service and tailored solutions.
2) Trade Shows and Industry Events: Participation in trade shows allows Artel to showcase its products directly to business clients and network with industry professionals.
3) Email Marketing: Targeted email campaigns can be used to inform businesses about new products, promotions, and industry insights.
2. B2C Marketing Approach
1) Audience: Artel targets individual consumers looking for affordable and reliable electronics for personal use, such as smartphones, refrigerators, and washing machines.
2) Mass Market: The targeting is broader, appealing to a wide demographic that includes families, young professionals, and tech enthusiasts.
1) Emotional Appeal: B2C messaging often focuses on emotional triggers, such as lifestyle enhancement, convenience, and the joy of using modern technology. Artel may highlight how its products improve daily life.
2) Promotional Offers: B2C marketing frequently includes promotions, discounts, and limited-time offers to encourage quick purchasing decisions.
1) Retail Outlets: Artel products are sold through various retail channels, including electronics stores and supermarkets, making them easily accessible to consumers.
2) Social Media and Online Advertising: Engaging consumers through social media platforms and targeted online ads is crucial for reaching a larger audience and driving brand awareness.
3) Influencer Marketing: Collaborating with influencers can help Artel reach younger consumers and build brand credibility through trusted voices.
3. Key Differences
1) B2B: Focuses on specific industries and businesses, often with a smaller audience.
2) B2C: Targets a broader consumer base, appealing to various demographics.
1) B2B: Emphasizes long-term value, reliability, and relationship building.
2) B2C: Focuses on emotional appeal, lifestyle enhancement, and immediate benefits.
3. Channels
1) B2B: Utilizes direct sales, trade shows, and targeted email marketing.
2) B2C: Relies on retail outlets, social media, online advertising, and influencer partnerships.
Artel company has established itself as a dominant player in the electronic manufacturing industry by leveraging its commitment to quality, innovation, and cultural heritage. Artel has successfully positioned itself in domestic and international markets through a well-structured marketing mix and strategic use of the BCG matrix. The company’s transition from B2B to B2C has enhanced customer engagement and provided valuable insights into customer preferences. However, to maintain its competitive edge, Artel must embrace emerging trends such as smart ways, eco-friendly materials, and augmented reality in retail. Expanding its digital presence and adopting customer-centrism strategies will be key to sustaining long-term success in an increasingly competitive global market.
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