Lanka Tiles PLC

Group Members: Group Members: Aathil Ahamed (HDBM – F - 141004)

Ajutharsan S. (HDBM – F - 141005)

M.Y.M. Ihthisam (HDBM – F - 141062)

A.B.A. Asam (HDBM – F - 141015)

Mohamad Nilshad (HDBM – F -

26th September

Lanka Tiles PLCLanka Tiles PLC

Trends in Marketing Mix of Lanka Tiles PLC

Contents

Trends in Marketing Mix of Lanka Tiles PLC...........................................................................1

Introduction to Lanka Tiles PLC................................................................................................2

Vision.....................................................................................................................................2

Mission...................................................................................................................................2

Marketing and Sales of LTPLC.................................................................................................3

Key Efforts to Develop Export Markets................................................................................4

Innovation and New Product Developments..........................................................................4

Marketing Plans which are taken by LTPLC.........................................................................5

SWOT Analysis Related to Sales and Marketing..................................................................5

Strengths.............................................................................................................................5

Weaknesses........................................................................................................................6

Opportunities......................................................................................................................6

Threats................................................................................................................................6

The Marketing Mix of LTPLC...................................................................................................7

Product...................................................................................................................................7

Form of the Product...........................................................................................................8

Levels of the Product.........................................................................................................8

Life Cycle Stage of the Product.........................................................................................9

Product Mix........................................................................................................................9

Price........................................................................................................................................9

Place.....................................................................................................................................10

Local Market....................................................................................................................10

Foreign Market.................................................................................................................11

Locations..........................................................................................................................12

Other Distribution Strategies............................................................................................12

Promotion.............................................................................................................................13

Promotion Mix.................................................................................................................13

Introduction to Lanka Tiles PLC

Lanka Tiles PLC has been producing and exporting high quality ceramic tiles for over thirty

five years. The market leader and premier ceramic tile manufacturer in Sri Lanka, LTPLC is

a major contender in the highly competitive international arena, supplying quality tiles to

discerning markets. Their product quality and designs are second to none.  They have the

capacity to produce approximately 2.3 million square meters of tiles annually. Sri Lanka is a

beautiful and diverse country that has an abundance of raw materials for the production of

their tiles. They are strongly committed to investment in Research & Development in order

that their tiles continue to meet the exacting manufacturing standards of the international

marketplace. They are equally committed to the well being of the environment and have

many policies in place to help the company be on the cutting edge of green tile production. 

Their tiles conform to ISO 13006. A wide range of tiles in a variety of colors, textures and

sizes including special trim tiles and decorated tiles are manufactured by the company today.

Vision

“To be a leading producer of wall and Floor coverings and related products for the local and

international markets”

Mission

“The production and marketing of exceptional quality products at optimum affordability “

“To manufacture and market quality ceramic products for comfortable living”

Marketing and Sales of LTPLC

In the middle of the decreasing demand for local tiles and growing trend favoring the use of

floor tiles as a substitute for tiles, LTPLC took positive steps to re-evaluate the strategic

marketing focus of the company during 2013. Underscored by the need to differentiate the

tile offering from the floor tile portfolio, the company stepped up both above-the-line and

below-the-line advertising to promote both mainstream offerings and the function range for

tiles.

In achieving this, LTPLC continued to follow the distribution model embarked on in the year

2012, which concentrated on developing the franchise showroom network as the key sales

channel. Taking the LANKA TILES brand to a wider island-wide demographic, saw the

opening of 8 new branded franchise showrooms at strategic locations during 2013, adding up

to a total of 37 showrooms across the country. Notably, both the interior and exterior of all

new showrooms were designed to showcase the unique presence of the LANKA TILES

brand identity. In doing so, the company capitalized on the expertise of the Royal Ceramics

group to further augment LTPLC’s capabilities and develop the showroom concept as the

core sales medium. New showrooms were thus outfitted with enhanced display and

merchandising capabilities to promote a more customer centric layout. Captioning the same

theme at all showrooms across the country also meant that most existing showrooms needed

to be revamped and upgraded to conform to the new dynamic outlook. Having commenced

the process in 2013, many of the existing showrooms have already been upgraded as at the

end of the current year.

As part of the Endeavour to serve the low-end mainstream markets, LTPLC’s island-wide

dealer network was also maintained during the year. Although no new dealers were added to

the existing portfolio, the company concentrated on developing a more versatile dealer profile

and aligning the dealer model to serve the goals of the company in a more effective manner.

Efforts to service the high-end and position offerings of the LANKA TILES portfolio became

a reality with the commissioning of the first up market concept showroom in Jawatta.

Showcasing the complete range of high-end tiles, the ultra-modern showroom laid out on par

with international standards, uses high-tech graphic imagery to create a complicated, yet

customer-friendly atmosphere.

The devastating response from customers, regarding the new showroom, has encouraged the

company to look into the possibility of opening similar showrooms at other key locations as

well.

Amidst shrinking local markets, LTPLC also turned its focus on improving its prospects in

the export markets as well. Continuing with efforts launched in the previous year, the

company made concerted effort to strengthen its presence in selected foreign markets and

territories.

Key Efforts to Develop Export Markets

Commissioning of the first ever overseas showroom in Bangalore to showcase the

mainstream offerings under the LANKA TILES brand to the Indian market.

Participation in the Coverings 2013 exhibition held in Atlanta, Georgia USA in a bid to

penetrate the US and Canadian markets.

Participation at the Cerasaie 2013 exhibition in Bologna, Italy to help promote the brand

in the European markets.

Innovation and New Product Developments

In its pursuit to stay a step ahead of the market, LTPLC continued to improve the design

capabilities of the company in tandem with evolving market trends. Hence, during the year, a

new state-of-the-art DURST digital printing machine was purchased to enhance the surface in

20cm x 40cm size profile of tiles and offer a robust range of options for customers to choose

from.

Consequently, a range of new designs were released to the market, key among them was the

revolutionary and new “Evolve, Habitat and Marfil collections in 30cm x 45cm size and

Mandiraya collections in 30cm x 60cm size and Cubrose, Claudia, Origami, Lays collections

in 20cm x 30cm size collection being value added concept tiles, these collections promotes a

range of structured designs to suit multiple surfaces and layout options. Moreover, efforts to

cater to all market segments saw a more comprehensive range of sizes and colour offerings

for each collection.

Marketing Plans which are taken by LTPLC

Understanding corporate goals and objectives of the company.

Making strategies for their actions in order to meet the goals.

Budgeting.

Planning the actions.

Implementation of the actions.

Monitoring the progress.

Getting feedbacks.

SWOT Analysis Related to Sales and Marketing

According to LTPLC, their SWOT differs from season to season. Therefore, they make the

SWOT Analysis habitually as much as possible. Their last SWOT Analysis which was made

at the end of financial year 2013/2014 is shown below;

Strengths

They have a strong distribution force all over the country as well as in foreign countries.

Their brand name is well known among the people globally.

They mostly use machineries and raw materials with most advanced technology which are

imported from Europe in order to maintain their higher quality.

Weaknesses

Moving to advanced technological changes accordingly (Changing according to the rapid

environmental changes).

Getting adapted to the new changes of designs and fashions.

Inability to allocate capital to make rapid changes in designs and fashions.

Producing new styles immediately in order to beat the competitors.

Incapability to fulfill the total requirements of the entire customers.

Opportunities

Though there are low opportunities in Sri Lankan Market, there are some opportunities in

foreign countries.

As African countries are in the developing stage, there is a high demand for Lanka Tiles

than their own productions (There is demand in countries such as Oman and Dubai also).

In countries like India, the middle class people who are considered as the majority of its

population mostly concern about foreign made tiles like Lanka Tiles.

Threats

The express changes and developments in fashions and life styles of the customers.

Lack of availability of several raw materials for their productions. In case of importing the

raw materials from foreign countries, the cost tends to increase.

Importations of foreign products reduce the demand for their products.

Cost for energy sources such as fuel and electricity gets increased.

Threat of new entrants into the current globalized market (Anyone can enter into the market

at any time).

The Marketing Mix of LTPLC

The marketing mix is a business tool used in marketing and by marketers. It is often crucial

when determining a product or brand’s offer and associated with the 7P’s (Product, Price,

Place, Promotion, People, Partners and Physical Evidence) to address the different nature of

services. But in Sri Lanka, most of the business firms (including LTPLC) mainly focus on

key 4P’s (Product, Price, Place and Promotion).

Product

In cycle with the evolving local tile market, dramatic changes were made to the product

portfolio during the year 2013. Traditionally geared for the mid-income segment of the local

consumer market, the company forcedly diversified product offerings to provide all

customers ranging from upscale to budget market segments. Particularly given the growing

popularity of cut cement flooring as an alternative to tiling, this form of creative

diversification was considered to be a timely move.

Boldly deviating from established tile profiles, the Company embraced more innovative

models to cater to the highly responsive market for porcelain tiles and large format tiles. Due

in large part to technology investments made in the previous year, Porcelain tile production

commenced in the current year. The preemptive decision to install highly specialized edge

rectification and chamfering equipment, the year before proved to be an invaluable

investment leading to LTPLC’s timely entry into the porcelain tile arena. Furthermore, the

decision to invest in large format tile technology, during the year under review, added new

vigor to existing product offerings. Meanwhile, supported by investments in digital printing

technology made during the current year, nineteen high-quality new designs were introduced

to complement the existing LANKA TILES product portfolio, offering an unprecedented

range of affordable options that cater to a broad spectrum of customer segments. This being

the widest ever selection offered under the LANKA TILES umbrella, the range now consists

of options to suit the discerning tastes and lifestyle requirements of all customer segments.

Seeking continuous improvement in design concepts and capabilities has always been a

priority for LTPLC. To fulfill this need, in August 2012, the Company sought the expertise of

a full time Italian design specialist.

Triggered by the growing number of commercial and residential high-rise complexes in

Colombo city and the country’s flourishing tourism sector, the market for upscale flooring

has continued to bloom in the recent past, highlighting the need for an even greater

availability of options. To fulfill the selective needs of this emerging market, LTPLC took

steps to source tiles and marble flooring directly from Europe. Of particular note is

introduction of the Impronta and Baldocer brand of European tiles and marble flooring

options from Greece which offer sophisticated elegance and effortlessly combines tradition

and modernism in its product range.

Meanwhile, a range of good quality affordable tiles was sourced from China to supplement

LANKA TILES’ variety of selections and service customers seeking more affordable options.

Form of the Product

Tiles are durable products which can be used by the consumer for long period of time.

The product “Lanka Tiles” is used by both consumer and industrial categories. They have

produce for individuals those who need and who come for their showrooms, and they have

many sub dealers to sell their product to market.

These tiles are known as shopping products, because normally shopping products are;

Less buying frequency with compare to convenience products.

Customer involvement is taken place.

Levels of the Product

Core level – Customers can see, touch and identify the product.

Actual level – In Lanka Tiles they have many designs and colors to fulfill the customer

needs.

Life Cycle Stage of the Product

In Lanka Tiles they have many products and all have been passed the introductory stage

where some are in growth stage and a few are in declining stage also.

Therefore, the marketing department does their marketing by their brand name; their brand

name is in maturity level therefore they use to market their product by their brand name.

Product Mix

They have doing the product mix based on demands, they have changed their sizes, designs

for tiles.

Price

According to Lanka Tiles marketing manager,

There are two types of pricing strategies in the market. They are;

Cost based pricing strategy.

Market based pricing strategy.

Lanka Tiles is always using market base price strategy when they are pricing, they are not

relied the cost. Some time they have to sell it on cost price also based on the market demand

and sometimes they can sell it on a good margin.

Certain segments in the market they buy products because of the price. If the process is law

they do not want to buy and if the price is high they will buy.

When they developed the product they have to identify for whom to produce, the segment is

willing to pay high price they will sell it on high price rather than looking of the cost. And the

segment is willing to pay law price they have to sell it on law price because of the

competitors.

The higher price segment is moral and the other hand they do not want to give away and the

law segment also important if they do not cost them the competitors enter to that point. So

they have to protect the market without allowing the competitors.

So Lanka Tiles always uses market base pricing strategy.

Are the customers of Lanka Tiles satisfied with the pricing strategy of them???

Yes of course,

Customers satisfy Lanka Tiles price strategy.

That’s why Lanka Tiles successfully make their business all over the island.

Place

The place is the main component of marketing mix out of four. To create the right marketing

mix for Lanka tiles the goods must be in the right place at the right time. Making sure that the

goods arrive when and where they are wanted is an important operation. A suitable marketing

mix helps to achieve the organization goal easily.

Although figures vary widely from product to product, roughly a fifth of the cost of a product

goes on getting it to the customer. 'Place' is concerned with various methods of transporting

and storing goods, and then making them available for the customer. Getting the right product

to the right place at the right time involves the distribution system. The choice of distribution

method will depend on a variety of circumstances. It will be more convenient for some

manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell

directly to retailers or customers. The Lanka tiles have five categories of distribution channels

that are showrooms, franchise showrooms, Lanka Tiles factory outlet, consignment agents,

and warehouses.

Local Market

As we know the LTPLC is the very popular tiles manufactures in Sri Lanka. They cover the

total island through the supply chains. They have 30 show rooms were customer can come

and purchase directly. And they appoint distributors dealers in main areas.

Foreign Market

The Lanka tiles is the largest company which produce all kind of tiles such as flow tiles and

wall tiles etc. They supply tiles not only for Sri Lanka but also to the foreign countries .it

around 20 countries such as male, Singapore and Malaysia and India. They have a very good

demand in foreign markets due to very high quality and unique designs. Even though India

produces various tiles, the Lanka tiles export there because some customer would like to

purchase foreign brands. That is a good opportunity to Lanka tiles plc.

Locations

They have so many distribution channels the direct marketing and indirect marketing

channels .so the customer can buy their products in various place of Sri Lanka. They have the

following locations.

Top of Form Bottom of Form Showrooms (02)

Franchise Showrooms (37)

Lanka Tiles Factory Outlets (01)

Consignment Agents (06)

Warehouses (03)

Other Distribution Strategies

Depending on the type of product being distributed there are three common distribution

strategies available:

Intensive Distribution

Used commonly to distribute low priced or impulse purchases products tiles are never use

commonly so that strategy not suitable to them.

Exclusive Distribution

It involves limiting distribution to a single outlet. The product is usually highly priced, and

requires the intermediary to place much detail in its sell. They would like to cover the

whole island so they should have so many outlets.

Selective Distribution

A small number of retail outlets are chosen to distribute the product. Selective distribution

is common with products such as computers, televisions household appliances, where

consumers are willing to shop around and where manufacturers want a large geographical

spread.

If a Lanka tiles PLC decides to adopt an exclusive or selective strategy they should select a

intermediary which has experience of handling similar products, credible and is known by

the target audience. But here that strategy can’t use because ceramic items need to display

separately.

Promotion

Modern market calls for more than just developing a good product, pricing attractively and

making it available to target customers. Companies must also communicate with their

customers to promote their product or service.

Promotion Mix

Advertising: Any form of media form of non-personal presentation and promotion of idea,

product or service by an identified sponsor.

Advertising Media

oBroadcast Media: - Television, Radio.

oPrint Media: - Newspapers, Magazines.

oOutdoor Advertising: - Hand bills, Electricity and Ordinary bill boards.

oOnline Advertising: - Websites, Search engines, Social medias (Facebook, Twitter, etc).

Personal Selling: It’s the interpersonal arm of the promotion mix.

Selling Process

o Identifying prospective customers.

oTarget the customers and buyer trends.

oApproaching the customers.

oDemonstration.

oSolution to customers’ problems.

oPutting in an order.

oFollow up.

Sales Promotion: This is considered as the major activities of the company.

Process of Sales Promotion

o Identifying and winning new business opportunities within the defined market sectors.

oDeveloping a marketing team to implement the strategy and deliver based on objectives.

oCarrying out effective research and intelligence into competitor’s products and other

trends.

oOverseeing and managing financial budgets.

oConstantly improving business development.

oEnsuring the achievement of a high standard of service.

The sales promotion tools include;

o Money back guarantee.

o Discounts.

o Special offers.

Public Relation: This concern in building good relationship with the company’s various

public by obtaining favorable publicity and building up a “Corporate Image”.

Measures in Public Relations

oHelping to educational institutes (E.g. Sri Lanka Institute of Architects).

oMaintaining relationships with local community.

oOrganizing sports activities (E.g. Volleyball, Cricket).

oEngaging in other CSR projects/activities.