Wintek Marketing Plan PDF

SAUDI INDUSTRIES for PVC WINDOWS
CO. LTD
Business and Marketing Plan

Business & Marketing Plan
 Executive Summary
 Environmental Scanning
 Macro-Economic.
 STEEPLE Analysis.
 Constrictions & Building Sector Analysis ( Market Life Cycle ).
 SWOT Analysis & TOWS Strategy.
 Marketing and Sales Plan:
 Overview of Wintek.
 Introduction of the PVC.
 Marketing Objectives.
 Marketing Researches.
 Segmentation, Targeting and Positioning.
 Marketing Mix 7 Ps ( Product, Price, Place, Promotion, Process, People and Physical evidence ).
 International Marketing and Entering a New Markets.
 Implantation Strategy and Budgets.
 Evaluate and Control

Environmental Scanning
 Global Economics Outlook:
Despite recent improvements in economic conditions and in market
sentiment, the global economy is still struggling to recover from the deep
financial crisis.
The Eurozone economy is expected to be flat this year, but risks are to
the downside.
Recent measures on banking supervision, greater fiscal integration and
accommodative monetary policy are the positive factors, though
progress is a concern.
The US economy is likely to see a stronger recovery following the partial
“fiscal cliff” agreement and the on going improvements in the labor
market.

Further fiscal contraction, debt ceiling and long term fiscal sustainability
are the main concerns.
There is a persistent divergence between weak performance in
advanced economies and firm performance in emerging economies.
Saudi Arabia Economy

 Saudi Economic Outlook:
The Saudi economic growth is among the highest compared to G20
countries.
Positive growth outlook for 2013-14 is supported by (i) high government
spending, (ii) robust domestic consumption and (iii) supportive credit to
private sector.
High oil revenues levels will boost business and investor confidence, but
major risk to this scenario is a global growth meltdown that bring a
sustainable decline in oil prices.

 Positive global demand for hydrocarbon products and elevated oil prices
will maintain a double digit currant account surplus this year.
 Solid domestic performance is expected to keep imports and the invisible
account deficit elevated.
 Oil revenues will also keep the fiscal balance strong despite increasing
spending:
 Support to domestic demand and positive spillover to non-oil private
sector.
 Housing, construction, transport, retail and financial sectors to benefit the
most.

Budget spending priorities are consistent with recent years

 High capital spending remains psychologically important for the private
sector.
 A record high investment spending in 2013 will maintain a solid and
sustainable growth in manufacturing, construction and transport sectors.
 A capacity constraint is likely to limit the expansions of capital spending in
2013-14 compared to the previous two years.

Real GDP growth by sector
Three categories of sectors:
Construction and transport, the main beneficiaries of
government investment spending, should be the fastest
growing sectors in 2014.
Consumption oriented sectors expected to do well on
favorable domestic demand, rising government
consumption spending and recent labor market reform.
Export oriented sectors could be under pressure on the
back of worsening global demand.

 Real GDP growth by sector table:

 Construction sector indicators:
 Local demand for manufactured products, especially those used for
construction, such as cement is likely to maintain an upward trend.
 According to Middle East Economic Digest, there are projects underway or
planned in the Kingdom worth $783 billion; virtually all of these involve
some element of construction.
 New letter of credit opened for imports of building material followed the
capital spending upward trend.

 The banking sector:
 Domestic banks have comfortable liquidity position most of which driven
by consecutive years of expansionary government budgets.
 This should help banks offset any material sudden liquidity pressures due
to regional and global uncertainties.
 The incremental increase in deposits reached a record high last year most
of which were deposited at the central bank.

 Domestic demand is rising:
 Monthly data points to an upward trend in consumer spending, despite
seasonal trend.
 Retail, telecom, and financial sectors will benefit from the recent
government initiatives particularly the ongoing labor market reform.
 Consumer demand for real estate has pushed personal lending to a new
high.

 Inflation cooled but not entirely
 Inflation slowed to 4.5 percent in 2013 with the core rate falling at a faster
rate.
 Some local inflationary pressure is likely to remain as a result of the high
level of consumer and government spending, rising bank lending and low
interest rates.
 Domestic rental inflation, international food prices and weaker dollar will be
the main divers of inflation in 2014.

 Conclusion
 2012 was a difficult year for the global economy. US debt ceiling, fiscal
sustainability in the US and the Euro crisis will be the focus of this year.
 High government spending will be the main source of economic growth in
the Kingdom. This spending is affordable, at the moment. Other economic
growth divers include:
Solid domestic demand
Higher bank lending and low interest rates.
 Oil prices will remain elevated, though both prices and production will
slightly fall over the remainder of the year.
 Strong Saudi story and uncertain global environment means Kingdom
should be attractive to foreign investors.
 Short-term risks are external; the global economy and the regional political
situation. Structural problems with the labor force, rapidly growing energy
consumption and role of government are long-term term concerns.

Saudi Arabia: Key data and forecasts

Constrictions & Building Sector
Analysis

Constrictions & Building Sector Analysis
Kingdom of Saudi Arabia (KSA)
 The residential construction and real estate market of Saudi Arabia
witnessed a phase of cyclical developments due to fluctuating oil prices
during 1975 and 2012. The market was marked by extreme undersupply of
residential units, especially in the low and middle income segment, as a
result of rapid population growth in both the local and expatriate
populations.

 However, the residential construction market picked up pace post 2000
after the enactment of the Foreign Investment Act, which was enacted to
promote Foreign Direct Investment (FDI) in the sector. The act liberalized
the foreign investment laws in Saudi Arabia.
 The Saudi Arabian General Investment Authority was created under the
act with a responsibility of licensing all new foreign investments across
Saudi Arabia. Later a new real estate law was enacted allowing legally-
resident non-Saudis to own real estate for their private residence, provided
they received a license from the government.

 As a result of changes in regulations and increase in population, the region
witnessed huge surge in housing demand which led to a sharp increase in
property as well as land prices. From 2002 to 2005, the prices of house
units and land increased by around 13.7% and 16.5% per year
respectively. The market remained largely unfazed by the global economic
recession mainly due to pent-up demand of housing units from both local
as well as foreign investors.

 The residential construction market of Saudi Arabia remained largely
immune to the downturn in the construction sector for a major part of 2012,
with a marked imbalance between demand and supply of residential units.
The region witnessed the start of several large and small residential
projects in the last two years. The commencement of a 500,000 affordable
housing unit project by Saudi Arabia in 2012 has also helped maintain the
upbeat mood in the market. However, there is further scope to provide
homes to nationals falling in the low and middle income groups. Only 35%
of Saudi nationals own a home and low and middle-income households
comprise approximately 80% of the current unmet housing demand.

 Our long term outlook on residential real estate and construction markets
of Saudi Arabia point towards a positive future over the next five years on
the back of rising population and a booming economy (supported by stable
oil prices). IMF‟s estimates indicate that the GDP and population of Saudi
Arabia are expected to grow 4.2% and 2.1% respectively between 2011
and 2016.

Constructions Market SWOT Analysis KSA
• Saudi Arabia has the largest construction sector in the Middle
East. Alongside active government
spending, efforts are also being made to increase private
investment. Government-led activity
boosted by oil windfalls is driving demand in the construction
industry.
• The Ninth Development Plan for the Kingdom of Saudi Arabia
sets out plans to invest SAR 1,444bn
(US$385bn) in social and economic infrastructure between
2010 and 2014.
• The total value of contracts issued in the Kingdom's
construction sector grew by 50% year-on-year
in H212 (following a 140% y-o-y increase in awards during
2011).
The number of ongoing mega-projects means that many
multinational firms have a presence in the
country.
• Increasing private investment should provide
opportunities for large foreign contractors to increase
their involvement in the country.
• As other construction industries in the Gulf stagnate,
construction companies look to Saudi Arabia
for opportunities.
• Saudi Arabia remains a 'construction safe heaven' amid
both wider political and financial turmoil.
• The industry is heavily reliant on government contracts
rather than a free market driven by the
private sector. Furthermore, due to delays in government
payment (largely due to red-tape and
inefficient bureaucracy), government contracts can remain
unpaid for months.
• The country has a persistent unemployment problem.
According to the government, unemployment
among Saudi nationals reached 11.0% at the end of 2011.
• The country is facing a power crunch. However, significant
investment is being made to meet future
demand through the construction of numerous power plants.
• The Arab Spring, which created instability in numerous
countries in the Middle East and North Africa
region, catalyzed some discontent in Saudi Arabia. While this
was short-lived and quickly contained,
it remains a risk.
• The death of crown prince Sultan bin Abdul-Aziz Al Saud
raises questions over succession and could
be a potential source of instability.

• Saudi Arabia has the largest construction sector in the Middle East.
Alongside active government
spending, efforts are also being made to increase private investment.
Government-led activity boosted by oil windfalls is driving demand in
the construction industry.
• The Ninth Development Plan for the Kingdom of Saudi Arabia sets out
plans to invest SAR 1,444bn (US$385bn) in social and economic
infrastructure between 2010 and 2014.
• The total value of contracts issued in the Kingdom's construction
sector grew by 50% year-on-year
in H212 (following a 140% y-o-y increase in awards during 2011).

The number of ongoing mega-projects means that many multinational
firms have a presence in the
country.
• Increasing private investment should provide opportunities for large
foreign contractors to increase
their involvement in the country.
• As other construction industries in the Gulf stagnate, construction
companies look to Saudi Arabia
for opportunities.
• Saudi Arabia remains a 'construction safe heaven' amid both wider
political and financial turmoil.

• The industry is heavily reliant on government contracts rather than a
free market driven by the private sector. Furthermore, due to delays in
government payment (largely due to red-tape and inefficient
bureaucracy), government contracts can remain unpaid for months.
• The country has a persistent unemployment problem. According to the
government, unemployment among Saudi nationals reached 11.0% at
the end of 2011.
• The country is facing a power crunch. However, significant investment
is being made to meet future
demand through the construction of numerous power plants.

• The Arab Spring, which created instability in numerous countries in
the Middle East and North Africa region, catalyzed some discontent in
Saudi Arabia. While this was short-lived and quickly contained, it
remains a risk.
• The death of crown prince Sultan bin Abdul-Aziz Al Saud raises
questions over succession and could be a potential source of instability.

Jeddah
 Jeddah had approximately 739,000 units of residential stock at the end of
Q3 2012. Jeddah‟s residential market is also marked by demand-supply
imbalance and nearly all additional supply till Q3 2012 has already been
sold. Most of the recent construction activity across the city was
concentrated in the upper-mid to high-end segments of the market.
 Jeddah Development & Urban Regeneration Company (JDURC) is
currently providing affordable housing and redeveloping the Khuzam and
Ruwais area of Jeddah. However, the private developers are still
struggling to offer solutions that can absorb high land prices.

 Demand-supply imbalance in the market has resulted in increase in prices
as well as rentals across Jeddah. Jeddah‟s residential market also
witnessed a strong demand for a major part of 2011, which led to an
increase in the average sale price of both villas as well as apartments. In
Q3 2011, average selling prices of villas and apartments was SAR4,000
and SAR2,800 per square meter respectively34. Jeddah also witnessed
an increase in rents in 2011, due to an under-supply of residential
compounds, particularly for expatriates. Developers have launched several
projects to encounter the problem of under-supply in Jeddah.
 Rental yields of villas/duplexes across Jeddah declined from 9.1% in Q4
2010 to 8.8% in Q4 2011. Also, rental yields of apartments in Jeddah also
declined from 11.5% in Q4 2010 to 10.8 % in Q4 2011. The decline in the
rental yields across Jeddah was mainly due to an increase in prices of
residential units on the back of a sharp rise in land prices across Saudi
Arabia in the recent past.

 In Jeddah, JLL projects an addition of around 78,000 residential units
between 2012 and 201536. We expect extreme shortage of residential
properties is likely to result in increase in both rentals as well as prices in
the short to medium term. In longer term also we maintain an optimistic
outlook of Jeddah residential properties market.
 The recent statistical data indicate that the building and construction sector
has witnessed a remarkable development during the past five years,
whereas the added value of the sector reached in 2012 to more than 97
billion riyals, and the value of capital assets for the building and
construction sector amounted to more than SR190 billion in 2012

SWOT Analysis
1. Booming at Building sector
in KSA
2. No competition at PVC
windows
3. The only PVC producer in
KSA market
4. Increase company market
share
1. Bad service
2. Deliver late
3. Bad Internal
communication between
the departments
4. Measurements mistakes
5. Bad reputation and word of
mouth
6. Unimplemented procedure
system
1. High quality PVC windows
2. PVC windows features
3. PVC advantages VS
Aluminum
4. Windek is Saudi Arabian
Company
5. There is no other company
manufacturing PVC in the
market
6. Wintek cover KSA with 6
branches
7. Wintek History and Projects
8. Wintek has all
manufacturing and
production departments
9. Techniqual skilled team
10.No out of stock
11.Different colors
12. Hard to copy PVC
windows system
13. No external fund
1. Chinese PVC Windows
2. New PVC company
open in the market
3. Losing market share

SWOT Analysis
1. High quality PVC windows
2. PVC windows features
3. PVC advantages VS Aluminum
4. Windek is Saudi Arabian Company
5. There is no other company manufacturing PVC in the market
6. Wintek cover KSA with 6 branches
7. Wintek History and Projects
8. Wintek has all manufacturing and production departments
9. Techniqual skilled team
10.No out of stock
11.Different colors
12. Hard to copy PVC windows system
13. No external fund

SWOT Analysis
1. Bad service
2. Deliver late
3. Bad Internal communication between the departments
4. Measurements mistakes
5. Bad reputation and word of mouth
6. Unimplemented procedure system

SWOT Analysis
1. Booming at Building sector in KSA
2. No competition at PVC windows
3. The only PVC producer in KSA market
4. Increase company market share
5. Export to the GCC market through a dealers

SWOT Analysis
1. Chinese PVC Windows
2. New PVC company open in the market
3. Losing market share
4. Aluminum

Defining Target
Market
Needs, Wants,
Demand
S
E
G
M
E
N
T
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N
G
T
A
R
G
E
T
I
N
G
P
O
S
I
T
I
O
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N
G
Marketing Research
Marketing Mix
7Ps
Product
Variety
Quality
Design
Featurs
Brand
Packa
ging
Size
Servics
Warrany
Return
Price
Price List
Discouns
Allowance
s
Payment
Credit
Place
Channels
Coverage
Assortnt
Location
Inventory
Transpot
Promotion
Promotion
Advertsing
Sales Force
Public
relation
Direct
marketing
People
Competence
Reliabiltiy
Caring
Attitude
Goodwill
Process
Customer
focus
IT support
Experience
perflght
Inflight
postflight
Physical
Evidence
On
ground
In flight

Wintek Marketing Plan PDF

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