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 - ?