Ultratech Cement Lanka (Pvt) Ltd Prepared by: Susantha Waduge AGM – Sales & Marketing “STRONGER WITH TIME” Marketing Plan for FY 2016 / 2017
Ultratech Cement Lanka (Pvt) Ltd
Prepared by: Susantha Waduge AGM – Sales & Marketing
“STRONGER WITH TIME”
Marketing Plan for FY 2016 / 2017
Structure of Presentation
• Situation Analysis
• SWOT Analysis
• Marketing Objectives
• Marketing Strategies
• Action Plan
• Sales Forecast
• Marketing Budget
• Evaluation
The Company• 17 Years Experience
• 32000 MT storage capacity – Brands – OPC (SLS 107) & PPC (SLS1247)
• 17% Market Share (Total Market Volume 5.5M – MT) & PLC – Growth Stage
• USP – Stronger with Time “28 days Strength”
• Market – Trade and Non Trade
• Customers - End users / House Builders / Contractors / Mega projects / Ready – Mix Concrete Plant
Total Sales, Revenue and Growth
Year 2011 2012 2013 2014 2015
Revenue (Mn) 6293 7086 9790 9642 10315
Rev Growth10.27
%12.60
%38.15
%-
1.51% 6.98%
Year 2011 2012 2013 2014 2015
Revenue (Mn) 6293 7086 9790 9642 10315
Rev Growth10.27
%12.60
%38.15
%-
1.51% 6.98%
Direct and Indirect Competitors
Political Environment Stability and Economic growth impact for cement market
34% Market shareUSP – Building Beyond TomorrowEconomic Brand – Samudra cement14 Billion Assets & 1 Billion profit
29% Market shareUSP- Strength Performance Passion13.3 Billion Assets & Revenue 20150 MillionEconomic Brand – Ambuja Cement
Indirect Competition – 32 other brands
Tokyo & Holcim spent more money on TVC
SWOT
- 5th Largest Cement Manufacture- One source Operation- 32000 MT Storage Capacity - Supply Bag and Bulk Foam- Short Shipping Transit- Financially well established
Strength
Opportunity
- New Mega Projects – E.g. -: Water Front / Port City- New market – North & East- Customer Duty 0 and SAPTA Agreement
Weaknesses
- FOB is high – Cost- Lack of R&D Process- Unavailability of second brand
Threat
- Price War in the market- Holcim and Lafarge Merges- Price control by CAA
Marketing Objectives
(A) Market Share.• Increase market share by 2% in FY 2016 / 2017• Capture 25% market share in North and East Region• Increase total market, 17% to 19 %• Increase sales revenue by 35%
(B) Awareness.• Develop brand awareness by 100% for OPC brand, build the brand
image and enhance purchase action & increase sales.• Increase awareness by 60% for Ultratech PPC brand.
(C) Sales Objectives.• Expecting 794 Million net profits - FY 2016 / 2017 with 8% growth• Marketing Budget - allocation of 1.25% from last year sales revenue• Import and distribution of UTC second brand (200,000 Bags per
month)
Positioning as “The Engineers Choice” Mind share of Mason Bass and the Engineers
Segment – 5 Region base on Geographically
• Colombo South• Colombo North• Southern• Central • North Central
Two New Region• Northern • East
Marketing Strategies STP
Targeting – House Builders / Small Contractors / Mega Projects / RMC Plant
Key Features in Positioning
UTC positioned as “The Engineers choice”• The Engineers choice, influence by Engineers.• 28 days strength than the competitors • Providing guarantee for results.• Consistency of quality and once source product.• Stronger with Times.• Enhance durability.
Marketing Mix Strategies – 7 P’S
Product - Increase 02 days and 07 days strength - Introducing of Economic Brand (Sigiri Cement) - Increase thickness of package – 3 ply
Price - Cash / Credit purchases Rs.5/- price differences - 45 Days credit facilities for Project customers - Match PPC price with Indirect competition - Economy Brand price to be matched with Indirect suppliers - Ex – Factory prices match for distributors – Region -wise
Place - Add new 25 retailers to mega distributors - New Distributors for North and East Region - 4000 retailers attached to distribution network and distributors - Distributors are responsible for availability of products - 10 More bulk carrier to be added for Bulk transportation - 2 More bag transporters to be added to project bag supply
Promotion
(A) Advertising
- New TVC to be created / Emotional appeal- First 03 month TVC - 12 month Radio commercial
(B) Sales Promotion
- Rs.10/- Target intensive for distributors.- 01 free bag for each 100 bag - distributors.- Rs.5/- discount for consumer (end users) with submission of UTC
logo from cement bag- 21 Engineers Meet (3 each in 7 Region) - Technical team.- 42 Meson Meet (6 each in 7 Region) - Sales team and Technical team.- 250 new dealer board - selected retailers.
Marketing Mix Strategies – 7 P’S
Marketing Mix Strategies – 7 P’S(C) Public Relation
- Sponsoring of government organization events - Clearing Agent and Bankers Annual day outing
(D) Personal Selling - Recruit new sales staff for Northern and East Region
(E) Direct Marketing- Distribution of product specification and company profile- Brochures and direct mail
Process - ISO and OHSAS safety procedures / Standard weigh bridge system
People - Attitudes, Commitment, Courtesy, Professionalism, Integrity, skill and competence, recruit new staff & training
Physical Evidence - Wall paint, distribute of Umbrella, T-shirts and caps with UTC logo
Action Plan Month from 1st April 2016 to 31st March 2017
Task Responsibility 4 5 6 7 8 9 10 11 12 1 2 3
Approval taking from CEO GM - Marketing
Setting KPI GM – Marketing / AGM & RSM
Establish 250 Dealer boards / BroachesBill Board
AGM – Sales / RSM
Agreement with media GM - Marketing
Imports & Distribution of second brand GM – Marketing / HOD – Plant / Distribution
Plant Modification HOD Plant Operation
Transport rates Negotiation / New Transporters and Rebate Scheme
GM - Finance / Marketing
42 Meson meets ASM / SE
21 Engineers meets AGM – Technical and Executives
Sales review meeting GM / AGM / RSM / ASM
Evaluation and review MP CEO / GM / AGM Marketing & Finance
Sales ForecastBudgeted Qty (MT) = 1,000,000.00
Budget for FY 2016 / 2017Description (In Rs) Notes
Amount
Sales Revenue 14,000,000,000.00 1
(-) Cost of Sales 12,600,000,000.00
Gross Profit 1,400,000,000.00
Expenditures
(-) Marketing Expenses 128,937,500.00
2
(-) Administration Cost 112,000,000.00 5
(-) Finance expenses 56,000,000.00 6
296,937,500.00
Profit from operating 1,159,062,500.00
Profit Before Tax 1,103,062,500.00
(-) Income Tax 308,857,500.00
Profit for the year After Tax 794,205,000.00
Summary of Marketing ExpensesDescription Amount Notes
Promotional Discount 20,000,000.00 3
Sales & Distribution Cost 30,000,000.00 3
Sales Commission 5,040,000.00 3
Sales Promotion - 1 (Engineers Meet) 5,250,000.00 4
Sales Promotion - 2 (Mason Meet) 6,300,000.00 4
Consumer Promotion 7,000,000.00 4
Advertising Concept & Designing Cost 1,000,000.00
Production Cost (TV/Radio) 4,000,000.00
Media Scheduling Cost 45,000,000.00
Other Marketing Expenses 5,347,500.00
Total Marketing Expenses 128,937,500.00
Note Description1 Selling price @ Rs.14,000/- per MT (budgeted 1,000,000 MT) and cost of
sale is 90% of total revenue.
2 Allocation of 1.25% of Total revenue of Finance Year 2015 / 2016. As per group policy allocated 50 million for TV & Radio advertising.
3 Promotional discount - Rs10/- per bag with target achievements and cash discount.Sales & Distribution – Included rebate for transportations.Sales commission – For Sales Managers and Executives.
4 Engineers Meet – 21 (Rs.250,00/- per meet)Mason Meet – 42 (Rs.150,000/- per meet)Consumer promotion – Rs.5/- each logo submission.
5 Allocated 8% from gross profit for Administrations expenses.
6 Allocated 4% from gross profit for Finance expenses.
Financial Notes
- Monthly - Quarterly - Semi annually- Annually
Marketing planObjectives/Strategy/Action plan
Set Performance indicators
Collect performance details
Compare performance
Deviations
Yes
No
Correction Actions
Continuing
Monitoring and Evaluations
Monthly Sales Report / Territory & Region – wise comparison, Sales Meeting
The End
Thank You
Questions - ?