Instead of perfect competition environment, the marketing growth in the segment is very steep as opportunities are huge and gigantic. To match the industry dynamism it is evident to have the simultaneous “Push and the Pull” Strategies of marketing to sell our products, where as our products are to be well equipped with the channel ends, so that every initiated approach to the targeted customers will full fill with the needs raised by the help of our marketing team. New entrants are very often as market is very vide open for specialized and esthetic options of usages, market diversity is huge and customer aspirations change frequently, it is extremely essential to evolve and showcase contemporary products, reflecting the fast-changing Indian lifestyle. The future of ceramic tiles lies not only in Metros and 1Tyr Cities, But also will get into 2tyr cities, Our Strategies will be Push and pull both as we will opt the Aggressive marketing strategy of approach for selling will focus on creating channel infrastructure then keep on developing them and get the number grow very substantially to get maximum channel to equip with our brand flow and simultaneously.
With Regards, SANJAY KUMAR DHAL Noida, U.P, India, +919555015324 [email protected]
business plan stategies for Somay Tiles & CERAMICS
The Assignment of encompassing the business plan is the pen-to-paper "rallying cry" of any start-up venture. Sound business plans not only help companies raise capital but they also help create enduring value. The research work is done, is majorly revolves around the Channel expansion plan and tapping of the present market and get on the business more with the basic approach of selling our manufactured products and make them readily acceptable by the end customer, the market is all together is very vast and will fetch an major sales of finished goods and ceramic tiles is perfectly set a big volume game.
By Sanjay Kumar Dhal , Noida, India, +919555015324, [email protected]
Somany Ceramics Ltd.
[07TH, March, 2010]
The ceramic tiles industry in India has followed similar trends internationally which have been characterized by excess capacities and falling margins. Countries like Malaysia, Thailand, Indonesia, Sri Lanka and Vietnam are setting up their own plants. China has emerged as a major competitor. Producers from Spain and Italy have the advantage of lower transportation costs while exporting to USA and Germany. In India, the per capita consumption is as low as 0.25 square meters per person compared to China (2 square meters per person), Europe (5 to 6 square meters per person) or Brazil (2.5 square meters per person). Rising disposable incomes of the growing middle class and 60 million units of housing storage hold out a great potential. A major change that took over the ceramic tiles industry, was the introduction of vitrified and porcelain tiles. These new entrant product types are said to be the tiles of the future. Internationally these tiles are already the major sellers. These categories of products account for 16% of all organized sales in this industry
List of Products. Vitrified & Porcelain, Ceramic Tiles. Granites. Marbles. Sandstone. Tiles. (Floors,Walls). Bathroom Collections. Land Scapping. Wall Cladding. Travertine. Interiors & Exteriors. Non Skid Bottom Applications Cleaning Agents (Commercial & Domestic) Surfactants Adhesives.
Market and competition The marketing is being catered by both organized and un organized sector , but in the case of ceramic tile it majorly lies with the organized sectors only apart from this granites and marbles it still a Par ball game of the organized and un organized sector, the new revolutions and modern technologies evolutes the finished ceramic tiles business in India into a specialized approach the business is around more than 7000 Crs approx… per year and it is growing by more than 18% of demand with the new approach to finished applications of interiors and exteriors application.
The Leading Players are KCL. H. & R. JOHNSON, SOMANY, ASIAN, EURO, NITCO, ORIENT, SPL and OREVA a new revelation into this market. Competition is very stiff as more organized players were their into the Ceramic tiles business, and tapping the market share is very hard ball game but not impossible all together, Because it still lacking the professional approach and dynamisms with major of the organized players, lately the leading players were getting more and more aggressing to get more and more business, as the market is growing like anything every one is there to achieve the Volume Game. So it’s clearly a volume based business approach and opportunity is wide open for more new players into organized business.
Organised Compititors. Anant Raj Industries Ltd. Antique Granito Pvt. Ltd. Asian Granito (India) Ltd. City Tiles Ltd. Century Tiles Ltd. Deco Lights Ceramics Ltd. Euro Ceramics Ltd. Gokul Ceramics Pvt. Ltd. H. & R. Johnson(India) Ltd. Jalaram Ceramics Ltd. Kajaria Ceramics Ltd. Lorenzo Vitrified Tiles Pvt. Ltd. Murudeshwar Ceramics Ltd. Oracle Granito Ltd. Orient Ceramics And Industries Ltd. Radiant Floor Tiles Pvt. Ltd. RAK Ceramics India Pvt. Ltd. Regent Granito (India)Ltd. Restile Ceramics Ltd. Sentini Cermica Pvt. Ltd Silica Ceramica (P) Ltd. Vrundavan Ceramics Ltd. Varmora Granito (P) Ltd. Sogo Ceramics Pvt. Ltd. Somany Ceramics Limited
Management experience Management Experience is very vital as well as fresh blood explored selling and convincing skills with modern management dynamisms, and specialized solution oriented servicing, service elongated approach is the vital, The Modern verticals selection, with the support of marketing needs and business development procedures, flashing services will follow the developments.
SOMANY will be equiped with the team of professionals and the services of professionals in different departments; • Sales • Marketing • Finance & Accounts • Production • Quality Control • Research & Development
Human Resourse Customer Care
All the Departments are Equiped with Mordern Communicative tools & system in the company. The information is shared between different departments through Informative medium networks . SOMANY Tiles & Ceramics have highly skilled and qualified employees. SOMANY Tiles & Ceramics manufactures a wide range of Tiles with different designs and colors. SOMANY Tiles & Ceramics has a keen eye on future. Proper visionary planning to build another manufacturing plants to meet the future demand. Structure Individual performer His/Her (Business Development Executive) Senior Business Development Executive His/Her Deputy Manager Manger Zonal Manger General Manager Vice President Managing Director / CEO
Blue & Maroon – Proposed Marron – Required to Build the Base….
Concepts-: BEDROOMS, KICHENS, BATHROOMS, LOBBY, WALLS, DRAWING,PUJA,EXTERIORS
Objectives and Goals • • • • • • • •
• • •
To achieve a x% of market share. Provide the complete ultimate interiors and exteriors surfacing solution. Satisfy the ultimate needs and reqirements of the market. Frequent developments and advancements to modern technologies Provide elegance and esteem in customer service. Will Develop maximum numbers of produst range. Offer the best warranty in the industry. To Develop strong R&D team to conceptualise novel designs. It creates 20-30 new designs every month in line with customer preferences to strengthen the brand recall. The Company will set to organise several meets with its dealers and sub-dealers which provides a rich insight into evolving customer tastes and preferences on a regional basis. Continue its un-ending process of new products and enhance existing products. In response to demonstrated needs of our market, new products or services being developed in the near future includes x, x, and z. Additional concepts/plans for follow-on next generation products . Making solutions for the next generation of products/services. Add… add-on services for future customer needs.
MARKET ANALYSIS It’s a business where market diversity is huge and customer aspirations change frequently, it is extremely essential to evolve and showcase contemporary products, reflecting the fast-changing Indian lifestyle. - Market Needs -: More Aggressive Approach, Special Targetting, Professional Approach, Effectivity, Best Warrrenty, Technical Sounness with Commercialism expertise, Propor Solution to needs -Market Trends –: Mordern Applications, New Colour Plays, Age/Gender/Socio Culture. -Market Potential and Growth –: Huge Growth in Real Estate and Constructions, with infrastructure growths. -Market Characteristics -: Sales Driven through networks and intermediaries. -Market Segments -: SOMANY Tiles & Ceramics has segmented the target market on the basis of the need of customers. The Pioneer Company divided the market into low to high end market. But they are mostly focus on high end market segment. They produce different type of tiles with different price ranges. Especially for high end market segment they produce high quality products with high prices and for middle end market segment they produce products with relatively low prices and low quality as compared to the high end market. So SOMANY Tiles & Ceramics produce different quality products with
different prices for different market segments.depends upon usages,projects & Institutions-&-Domestic.
Target Market Now Tiles have become an essential part for the decoration of our residential and commercial buildings. So our target market is that people who can afford and who want to make their lives worth living by using these tiles and who focus on beauty as well as luxury and style and design. So company main target market is upper middle class and elite class because lower middle class and poor class customers can not buy tiles. Target Architects (who often specify exactly what's to be installed in new construction) Interior Designers (for when the remodel is simply changing materials not structures. Builders & Contractors. Technician and Workers ( For 2 tyre & 3 tyre areas) suggest hiring an A/D rep-- Architect/Designer rep. rep means our Buiness Development Executive calls on the designer/arch/contractor about a specific project and brings in samples as they relate to that project. Find organizations that cater to these professionals, such as a contractor's association, or realtor's association. Dealars / Stockists The point is that mass media will not give you a good ROI for such a targeted niche audience. So you want to find a way to reach your target audience more directly. Target Sectors
SECTORS EDUCATIONAL INSTITUTIONS EDUSCATION SOCIETY SCHOOLS COLLAGES UNIVERSITIES PROFESSIONAL INNSTITUTIONS TRAINING CENTRES BANKS / FINANCIAL INNSTITUTIONSPUBLIC/PRIVATE BANKS CO-OPERATIVES INSURANCE SECTOR LIC / GIC FINANCIAL INSTITUTION SOCIETIESNGO's TRUSTS, CHARITABLES FOUNDATIONS TEMPLES, MASJID, GURUDWARAS, CHURCHS MISSIONS & MISSIONARIES
HOTELSHOTELS, RESTURANTS, STOP SHOPS RESORTS, BEACH INNS REST HOUSE, MOTELS, LODINGS HOSPITALSNURSING HOMES MEDICALS, GENERAL HOSPITALS SPECIALISED CLINICS, DIAGONOSTICS HOSPITAL & TRAINING CENTRE HOSPITAL & RESEARCH CENTER INDSTRIES, (GOVT / PRIVATE)SHIPPING, AIRPOTS, RAILWAYS, GOVT / PVT.OFFICES AUTO- BAJAJ, MAHINDRA, TATA PLANTS, CEMENTS, STEEL PLANTS SMALE SCALES, MANFACTURINGS MINNINGS, REFINARIES, TELECOM (BSNL), POST OFFICES, INCOME/SALES TAX POLICE AND DEFENCE RATAILBIG BAZAAR, RELIANCE, WALMART, SHOPPERS STOP REAL ESTATE ,CONSTRUCTIONS & HOUSINGS BUILINGS (JAYPEE, OMAXE, DLF, GOLF LINKS..Etc...) HOUSING BOARDS, DEVELOPMET AUTHORITIES SCIENCE CITIES, AMUSEMENT PARKS, CINEMA HALLS PARKS, MEUSIUMS, BOTANICALS, JOGGERS DEVELOPERS, ESTATE, APPARTMENTS, RESIDENTIALS SHOWROOMS, STOP SHOPS PAHWAYS, FOOTPATHS MULTIPLEXS, SHPPING CENTRES, STADIUMS
Intended Positioning: The positioning which SOMANY Tiles & Ceramics want to produce in the mind of customers is that they will provide them high quality and stylish products to improve their life style and make their life easy and beautiful.
Green Tiles. Ecofrienly Tiles Hygenic Life
4 Ps: Product: SOMANY Tiles & Ceramics is an ideal medium for coverage of floors and walls in the interior as well as exteriors in a practical cost effective and durable manner. It is like impossible to list all the applications of SOMANY Tiles & Ceramics but to mention a few here are some areas of the application: (1) Residential: It is used in boundary walls gate pillars, can porches, home lobbies, lounges drawing and dining, living, bed and bath rooms, kitchens and staircases. (2) Commercial: It is used in offices, showrooms, shops, plazas, shopping malls, hotels, restaurants, airports, railways and bus stations, hospitals and clinic, sport complexes and swimming pools. (3) Industrial: It is used in floor covering of all sorts of industrial units, ware houses, workshops, and depots. (4) Public Places: It is also used in pathways, footpaths, parking lots, and gas stations. Qualities of product: SOMANY Tiles & Ceramics are completely homogenized which means that the color the texture and the veins run throughout the thickness of the body just like the natural stone. Unlike what is available in the market in the name of , the colors, design and textures of ceramic are not superficial. So from the years of research and latest moderrn technology SOMANY Tiles & Ceramics is a gift for those people for those who want to upgrade their life style opt for today’s most modern material to make their life more beautiful. No Stain: It is easy to clean and offers complete chemical resistance due to extremely compact homogenous superior surface. Scratch Resistance: Its solid and compact body protects tile from scratches. 0% Absorption: No pores through out the tile thickness, extremely compact. This is even true for areas that have been subject to abrasion. Max Range Color Sizes: It offers a big list of different sizes and colors. Maximum Strength: It is pressed by hydraulic pressure with force into compact uniform tile. Dried and fired at a temperature of 1250C bringing them into one solid and compact body. Fine Edges: Cutting of these hard tiles is done by special diamond blades. That makes laying of tiles very easy and adds beauty to architecture.
SOMANY Tiles & Ceramics sets relatively high prices for their products as compare to the competitors. Prices are sets according to the good quality of the product. The product with good quality has high prices while the product with normal quality has relatively low prices. In local market their prices are relatively high than other competitors. Their high prices reflect their good quality. The Pioneer Company a complete range of product line and the prices vary between different product types.
Placement: SOMANY Tiles & Ceramics Will Equip with big distribution network in all over the country. The Pioneer Company will divide the local market into different zones, like East zone, West zone, North, etc. Each zone has its own head office and is responsible for marketing Sales activities in that zone. SOMANY Tiles & Ceramics distribute the product through its dealers in different cities. These dealers work with SOMANY Tiles & Ceramics on agreement basis. Each dealer is given target sales. After achieving a target sales discounts are offered to these dealers. These dealers only sell SOMANY Tiles & Ceramics products. However these dealers also sell the product to the small local retailers which sell multibrands under one roof. These retailers may have some cheaper brand as well as some imported brands. Now SOMANY Tiles & Ceramics will start to establish its own display centers in major cities like Galaries. These display centers have not products to sell but just work as to show and provides the information about the product.
Promotion: Advertising is done in leading Construction magazines and interior design journals. Taking part in international exhibitions is routine. SOMANY Tiles & Ceramics use different promotion tools to promote their product. Like Advertising, Exhibitions and Seminars. Exhibitions: SOMANY Tiles & Ceramics will also takes participation in different industrial exhibitions all over the country. Their representatives give a presentation there and provide the information about the brand. Seminars: SOMANY Tiles & Ceramics will also held some seminars for providing the information. In these seminars business customers are invited. Like Builders and contractors. In these seminars the information about the brand is provided to the customers.
Communication Issues: Brand Message Communication: SOMANY Tiles & Ceramics uses different Medias to communicate its message. They use advertising for message communication. Their ads show their message by showing their beautiful and stylish tiles decorates the offices, residential places and giving them more modern and beautiful look. Their ads show their slogans Elegance / SOMANY Tiles & Ceramics for Styles! Their ads show that SOMANY Tiles & Ceramics have remarkable tendency to increase the beauty of architectures. SOMANY Tiles & Ceramics also use digital sign boards, big bill boards in selective areas to communicate their message. Qualities of Media: SOMANY Tiles & Ceramics use different media for advertising. Like electronic media and print media. In electronic media they use TV channels for advertising. TV channels are very famous media vehicles and message can be communicated to a large number of people at one time. In printing media SOMANY Tiles & Ceramics use big Bill boards and digital sign boards which are relatively cheaper than the TV channels. These print media are very effective way of advertising when the people are not in their homes. People can watch the message to the roads in different places and when they are on a journey. So now this print media has become a more effective and cheaper medium for communicating the message.
Brand Elements: Name: “SOMANY Tiles & Ceramics” as the name shows SOMANY. By choosing that name they want to show that they are SOMANY in every thing, just like SOMANY in quality, SOMANY in style, SOMANY in producing waste range of designs, SOMANY in producing vast range of colors. So by selecting the name SOMANY they want to create an association that they are SOMANY in every thing. Brand Associations: These are the desired associations which SOMANY Tiles & Ceramics want to create in the mind of customers. • High quality products. • Complete range of products offered (wall, floor tiles). • Reliable Product. • Durable Product. • Numerous range of colors. • Extensive range of designs. • Stylish Product. THE BRAND: • More focus on packaging and product merchandising. • It may introduce a specific dedicated team to look after the overall brand equity. They will ensure that all showrooms and dealer display centres were in sync with the Elegance profile. Also they will look after the external packing material which creates an eye on look-and-feel, resulting in a holistic branding approach. • More focus on Research and design-development activities to achieve the cost and product design leadership. Logo: The company logo represents the first capital letter of SOMANY “U” in stylish way. Its purpose is that when any person watches this logo automatically his mind captures the image of SOMANY Tiles & Ceramics and this logo also communicates the company brand name. Slogan: Their slogan “Elegance Tiles For Styles”! It communicates the message that SOMANY Tiles & Ceramics are more stylish tiles meets with the modern needs and increase the beauty of your architectures. The word “Elegance” means most stylish most beautiful and the words “Tiles for styles” means once you use SOMANY Tile it will remain forever. So those slogans communicate the message that SOMANY Tiles & Ceramics will provide your architectures a beautiful look forever. It will upgrade your life style and will make your life easy and beautiful. This slogan also communicates the message that SOMANY Tiles & Ceramics have most beautiful styles and more durability. It will provide your architecture a beautiful look forever.
Marketing strategy Overall strategy : • Should adopt the widest distribution network model to deliver products to the end user in quickest and most effective way. It would also accelerate the sales. • It may include company owned showrooms, franchises, multi-product dealers and sub-dealers.
Distribution network should be clearly segregated towards specific product segments. May introduce three dimensional catalogue visual experiences to its customers and also give customer a chance to design product in their own way of choice (customized design specification). Setting up exclusive showrooms for special products instead of keeping with with the regular range. As example, the upcoming product ORVIT-a product in high glaze tiles segment should have an exclusive place to showcase. It would add to the exclusive ambience of the product. More introduction of matching wall and floor tiles.To grow its institutional business, the company should organize more interactions with architects, developers and government agencies at its dealer outlets. This would serve a dual purpose: it would enable the company to acquire an insight into evolving preferences of some of the most prominent and trend- influencing architects; on the other hand, it helped the company cater to their evolving preferences.
The Company’s marketing strategy is aligned with different product classes , Product Usages, Produsts Vertcals , Product Segments, Product Targets, that it itself manufactures and trades. The Somay Tiles & Granites has clearly segregated its distribution network, catering to specific product segments.
Channel Network : Will put all emphasis on proper infrastructure planning so that it will move out with advancing concern and will Create the Dealer Disributor Stockist Network…The Company will deploy the widest distribution networks in the Indian ceramic tile industry, facilitating a pan-India presence; its distribution network comprises owned showrooms, dedicated franchisees, multi-product dealers and subdealers. Basic Prime Deployments is to lay down the franchise model for the rapid scaling of SOMANY World showrooms in metros, Tier-I and Tier-II cities.
Channel Reviving Parameters : · Brand availability in the store · Frequency of the inventory · Timely delivery · Special/urgent supply · Supply time · Representative relation · Cash/dealer’s discount · Frequency of taking dealer’s advice · Customer’s prerequisite specification needs, if any · Variety in quality and size of the tiles · Dealer’s ranking PUSH
New dealer appointment [ time/ schedule] Annual sales estimates for the new dealers Monthly stockholding for the
new dealers in their dealership.
Annual sales estimates for the current dealers Monthly stockholding for the
current dealers in their dealership.
Regular trade discount Special rebate bonus for lifting more stock --say 20% over last year. CONTINUE
WITH THESE USEFUL PROGRAMS
Organize a dealers and architect function (Dinner program) Ø Provide tile stands to the dealers Ø Provide Shop signs Ø Leaflets Ø Giveaways (Pen) Ø Participate in industrial event -train Our sales representatives. -regular sales
-plus special bonus if they
achieve the targets [ 20% over the last year]
the best sales representative competition.
the outstanding dealer competition by regions in our country.
the best dealer competition nationally.
Direct marketing promotions to the ARCHITECTS. Direct marketing promotions to the BUILDERS/ CONTRACTORS With
special price based on volume.
BUT THE DELIVERY SHOULD BE THROUGH THE DEALERS. Sales drive by the sales reps. on major builders/contractors/renovators. For small builders / renovators
a loyalty program for 12 months
if they buy from the same dealer all their requirements. Advertise in the local papers/ magazines with a discount voucher offer with which individual flat owners/ home owners can buy our products from the local dealers, using the voucher. Load
website with a discount voucher offer
with which individual flat owners/ home owners can buy our products from the local dealers, by downloading / using the voucher. If our dealers
to paint their vehicles with
vehicles, we should help
your products/ logos.
Conclusion: The prospect and the future of ceramic tiles lies not only in Mertos and 1Tyr Citites, But also will get into 2tyr cities, Our Strategies will be Push and pull both as we will opt the Aggressive marketing strategy of approach for selling will focus on creating channel infrastructure then keep on developing them and get the number grow very subtantiailly to get maximum channel to equip with our brand flow and simultaneously will make the products pull through our advance encompassed marketing strategies to get a brand pull by making the sequencing through the key intermediaries into projets and institutions to achieve the giant and gigantic Volume based sales spread across the country. I would like to produce some of the evidences aligning with this and with this I would like to conclude my project.
ATTACHEMENTS: Excel sheet attachement – shows state wise , area wise manpower allocation and volume achievements. Powerpoint presentation of the supports.
:Wishing to mentor the ceramic Tile and Sanitaries world and the market andtest with my strategies @ +919861008008