Published on

Published in: Business, News & Politics
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide


  2. 2. SIR KHURRAM AZIZ FANI GIFT University, Gujranwala EXPORT MARKETING FOR MASTER TILES AND CERAMICS LTD. BY Awais Sheikh Roll # 02FBC003 M. Azam Nisar Roll # 02FBC005 Faisal Naeem Butt Roll # 02FBC017 This project is submitted to the Faculty of Business & Commerce, GIFT UNIVERSITY, Gujranwala Pakistan. In partial fulfillment of the requirements for the degree of Bachelors of Commerce (IT)EXPORT MARKETING 2
  3. 3. DEDICATION Dedicated to Faculty & Students GIFT UNIVERSITY, GujranwalaEXPORT MARKETING 3
  4. 4. ACKNOWLEDGEMENT First of all we are highly thankful to ALLAH Almighty who helpful usto fulfill the assigned project. Secondly, we dedicate this project to ourparents, who guide us on every step during our student career. They set up tomeet every challenge in every walk of life. We are owed to our worthy andrespectful teachers who taught so luminously and bestowed creative effort,mental enhancement that enables us to fulfill this task. Especially, we areobliged to Sir KHURRAM AZIZ FANI who encouraged and gave us mentalrobustness to complete this project. Lastly, we are thankful to the management of MASTER GROUP OFINDUSTRIES who provide us all the necessary information and helped us forthe completion of this project. AWAIS SHEIKH M. AZAM NISAR FAISAL NAEEMEXPORT MARKETING 4
  5. 5. PREFACENow a day’s business is the only legal way to earn money. But business is notan easy job. To maintain a business is a very difficult job, especially in thiscompetitive world when you find very tough competition on each step. Now adays manufacturing of a quality product is an easy job but to sell/ market it isa difficult one.The firm who is using marketing plans for its product is more successful.Specially when you are trying to access your target markets. You need toanalyses different environment of you target market, then it enables you tomarket you product over there. Still many people may feel like they do notunderstand how to market their product. To have a better understanding ofBusiness marketing, it would be better to look at the basic concepts andimportant steps of Marketing.The documentation of our project includes different information about a largescale business. That how it analyze the all environments of marketing for theexport marketing of Master Granite Tiles in United Kingdom Market. Allnecessary steps are discussed briefly in this project.EXPORT MARKETING 5
  7. 7. 13 Marketing Tactics 34 14 Marketing Mix 34 I. Price 34 II. product 35 III. place, 35 IV. promotion. 36 15 Business Risk Management 37 16 Research and development 37 17 Human Resources 37 18 Financial Plans 19 Balance Sheet 38 20 Profit And Loss Statement 40 21 Cash Flow Statement 41 22 Statement of Changes In Equity 42 23 Conclusion 43 OTHER DOCUMENTS BOOKLET OF MASTER GRANITE(DESCRIPTION OF BRIEF HISTORY, MISSON STATEMENT, OBJECTIVES, PRODUCTS, DESIGNS, PRICES, TECHNICAL DATA etc. )EXPORT MARKETING 7
  8. 8. COMPANY PROFILE Form of Business: 3 Public Limited Company & 2 Pvt. Ltd. Company Owners/ Principals: The above mentioned 7 directors are owners of this “MASTER GROUP OF INDUSTRIES” Name of Business: Company name on which we are focusing is Master Tiles and Ceramics Ltd. But as we know that it is a Strategic Business Unit of “MASTER GROUP OF INDUSTRIES” Starting Date of Business:EXPORT MARKETING 8
  9. 9. Master Sanitary Fittings was come into being in 1982, Which is the very first business ofthe Mster Group. In 1995 it started its tile manufacturing business and in October 2003 itintroduced granite tiles in market. Business operation : (For Master Tiles and Ceramics Ltd) • Full time • 24 hours a day • 3 shifts of labor (8 hours/ shift) No. of Employees (For Master Tiles and Ceramics Ltd) 1,000 Location:HEAD OFFICEG.T. Road Gujranwala, PakistanPRODUCTION SITE( for Granite Tiles)G.T. Road Kamoke, PakistanPRODUCTION CAPACITY: 25000 Sq. MeterContact Information:Ph# 092-431-111-300-400PABX 092-431-272770 to 272779Fax# 0431-272127,272721E-Mail info@mastertiles.comWeb Address http://www.mastertiles.comBusiness advisors: Legal advisor Firm Ahmad rauf Associates Chartered Accountant Firm Illyas Saleem Company Lahore Advertising Agency Creative Consultsant MARKETING ENVIRONMENTEXPORT MARKETING 9
  10. 10. It is very important that our organization considers its environment before beginning themarketing/ export marketing process. In fact, environmental analysis should be continuousand feed all aspects of planning. The organizations marketing environment is made upfrom:1. The internal environment e.g. staff (or internal customers), office technology, wagesand finance, etc.2. The micro-environment e.g. our external customers, agents and distributors, suppliers,our competitors, etc. Micro Environment LevelEXPORT MARKETING 10
  11. 11. 3. The macro-environment e.g. Political (and legal) forces, Economic forces,Sociocultural forces, and Technological forces. These are known as PEST factors. major forces in company’s macro environmentEXPORT MARKETING 11
  12. 12. ANALYSISTARGET MARKET UNITED KINGDOM 1. Political FactorsThe political arena has a huge influence upon the regulation of businesses, and thespending power of customers and other businesses. What our business must considerissues are such as:Political environment of the target market Political environment of U.K is very much stable, as there is no chance of militaryinvasion. And as their Government type is Constitutional Monarchy. It will be realy aplus point for our company to export over there.Government policy’s influence on lawsGovt. Policy may influence on laws regarding to tile industry because of much demandfor tiles. As we are exporting our granite tiles, so their laws regarding to flooring industrymay influence, but due to huge market demand of granite tiles the Govt. of U.K isproviding some relief to Tile exporters for U.K.Government’s position on marketing ethicsBecause of Government’s control on market moral values. Government never Discouragethe exports.Governments policy on the economyAs the economy of U.K is stable. So Government policy on the economy is to take ittoward prosperity.EXPORT MARKETING 12
  13. 13. Government’s view on culture and religionIf we talk about U.K Govt. view on our culture and religion, then it came to know thatthey really take care of every religion specially Islam because U.K second largest religionis Islam having more than 1.5 million people.Government involvement in trading agreements such as EU, NAFTA, ASEAN, orothers.Our target market’s government involved in these trading agreement, which mayinfluence positively for our exports, Because of UK govt.’s international organizationparticipation.AfDB, AsDB, Australia Group, BIS, C, CDB, CE, CERN, EAPC, EBRD, ECA, ECE,ECLAC, EIB, ESA, ESCAP, EU, FAO, G-5, G-7, G-8, G-10, IADB, IAEA, IBRD,ICAO, ICC, ICCt, ICFTU, ICRM, IDA, IEA, IFAD, IHO, ILO, IMF, IMO, INTERPOL,IOC, IOM, ISO, ITU, MONUC, NAM, NATO, NEA, NSG, OAS, OECD, OPCW, OSCE,UN, UN SECURITY COUNCIL, UNAMSIL, UNCTAD, UNESCO, UNHCR, UNIDO,UNITAR, UNU, UPU, WCL, WCO, WEU, WHO, WIPO, WMO, WTrO, ZC 2. Economic FactorsMarketers need to consider the state of a trading economy in the short and long-terms.This is especially true when planning for international marketing. We need to look at:Interest ratesAs it is very low in UK. Which may be 0.02%. we assume interest rate is different fordifferent business ethics.Long-term prospects for the economy Gross Domestic Product (GDP) per capita,and so onGDP:Purchasing power parity-- $1.528trillion(2002 est.)GDP-real growth rate:UK economyincreased by 0.6% in Q1 2004.GDP- per capita: purchasing power parity –$25,500 (2002 est.)EXPORT MARKETING 13
  14. 14. The level of inflation Employment level per capitaBecause annual inflation rate is decreasing. So it is a good indicator to do exports of tilesover there. CPI inflation – the Government’s targetmeasure – fell to 1.1% in March, from1.3% in the previous month. The largestdownward influence on the inflation ratecame from transport costs. Petrol anddiesel prices increased by less than lastyear, when there was uncertainty aboutfuture oil supplies. 3. Socio-cultural FactorsThe social and cultural influences on business vary from country to country. It is veryimportant that such factors are considered. For U.K market these factors include:Attitudes to foreign products and servicesU.K markets as well as customers always welcome foreign Quality Products. Becausethey just want best.Language impact upon the diffusion of products onto marketsYes, that’s why we used English language on manual of our tile industry as well as ourpackaging of the product.Roles of men and women within societyThey consider men and women not two different entities, their society give men & womenequal place.dominant religion and different ethnic backgroundsEXPORT MARKETING 14
  15. 15. Anglican and RomanCatholic is dominantreligion having 40million peoplesinvolvement withChristianity. 2nd largestReligion is of IslamHaving 1.5 millionpeople. This indicatornot only describe thereligion but also thedifferent ethnicbackgrounds of peopleliving in U.K.time do consumers have for leisureAs it is the best way to market our product on internet, television, radio as there are 228television broadcast stations, Radio broadcast stations: AM 219, FM 431, shortwave 3, &more than 400 ISPs having 34.3 million internet users.How long are the population living? Are the older generations wealthy?This table showsthat no doubt oldgeneration waswealthy but withthe passage of timenew generation isalso wealthy morethan oldgeneration.Population growth rate and Age distributionEXPORT MARKETING 15
  16. 16. There were 596,122 live birthsin England and Wales in 2002- an increase of 0.25 per centon 2001, when there were594,634. Age Range Total Males Females 0-4 3486253 1785688 1700565 5-9 3738042 1914727 1823315 10 - 14 3880557 1987606 1892951 15 - 19 3663782 1870508 1793274 20 - 24 3545984 1765257 1780727 25 - 29 3867015 1895469 1971546 30 - 34 4493532 2199767 2293765 35 - 39 4625777 2277678 2348099 40 - 44 4151613 2056545 2095068 45 - 49 3735986 1851391 1884595 50 - 54 4040576 2003158 2037418 55 - 59 3339004 1651396 1687608 60 - 64 2880074 1409684 1470390 65 - 69 2596939 1241382 1355557 70 - 74 2339319 1059156 1280163 75 - 79 1967088 817738 1149350 80 - 84 1313592 482707 830885 85 - 89 752035 226520 525515 90 and over 372026 83492 288534 Totals 58789194 28579869 30209325 EXPORT MARKETING 16
  17. 17. Age Distribution pie chart Do the population have a strong/weak opinion on green issues? UK emissions of a ‘basket’ of greenhouse gases fell by nearly 14 per cent between 1990 and 2003, as we know the population have its strong opinions. Several gases occur naturally in the atmosphere which keep the Earth at a temperature suitable for life by trapping energy from the Sun – the ‘greenhouse’ effect. Emissions from human activities are increasing the concentrations of several of these gases, causing global warming and climate change. Health Consciousness Census 2001 has released detailed results on health, disability and the provision of care, with 9.2 per cent of people in England and Wales saying their health is not good. As they are very much health conscious. Entrepreneurial spiritData for the three monthsending February 2003showed that the numberof people usually workingmore than 45 hours perweek continued todecline. EXPORT MARKETING 17
  18. 18. 4. Technological FactorsTechnology is vital for competitive advantage, and is a major driver of globalization. Weconsidered the following points:Does technology allow for products and services to be made more cheaply and to abetter standard of quality?As it is clear that our industry is manufacturing cheap in cost, and high quality products,as our granite tile industry is best quality granite tile producing company, because itinstalled world’s most recent advance technology and using it to meet not only its qualitystandards but to exceed them. So we are getting an edge on our competitor present overthere. If we talk about price then as we know that the raw material is the main thing whichshould be available for its processing, we are getting an edge that with the Grace of Allahwe are having the world’s best Soil resources on very cheap prices.Technologies offer customers and businesses more innovative products and servicessuch as Internet banking, new generation mobile telephones, etc.Their technology supports to consumers and business for more innovative product andservices. Because now this is the era of fast technology and globalization.Does technology offer companies a new way to communicate with consumers e.g.banners, Customer Relationship Management (CRM), etc?Yes, U.K most advanced technology offers companies by different attractive ways like,banners, CRM etc. With the passage of time mediums of communication with customersis increasing. SWOT AnalysisEXPORT MARKETING 18
  19. 19. Internal Strengths Weaknesses • World’s most advanced • managed by foreign engineers technology is being used.* as there is Unavailability of • Work Delivery Scheme skilled workman force • High Quality ** • We still got 60 % of Production Capacity. • Wide Range of products** • Service External Opportunities Threats • Expansion into the World Market • Sonex company is coming to • Retail Partnerships Granite Industry • Internet shopping# • Overseas groups entering the market (China’s Dumping ) • Further exploiting the Tile sector • Manufacturers are still seeking • Make own chain of regional to legally slow down the Stores penetration of own brands.* World’s best technology is being used by Master Group of Industries in manufacturing Granite Tiles.Which is the most advanced technology.** As we are having the world’s best technology, but there is also one more thing from which our industryis getting full advantages, it is the raw material availability in our country. As Allah give us a vast resourcesof Soil, clay, chalk. Pakistani Soil is best due to its quality. That’s why we are giving our customers world’slargest design range(250 designs) in Granite Tiles.# Although an elaborate internet shopping system is in place Master lags behind in this market share inonline shopping (3%). ‘Master incorporated its three existing Internet stations – Masterdeliver,Master@work and Master Direct – into an upgraded www.mastertiles.com portal in 2004. PORTER’S 5 FORCES MODELEXPORT MARKETING 19
  20. 20. Porter’s Five forces analysis helps us to contrast a competitive environment. Five forceslooks at five key areas namely the threat of entry, the bargaining power of buyers, thebargaining power of suppliers, the threat of substitutes, and competitive rivalry. 1. The threat of entry. As we know that Sonex Company is going to install its Granite Tile plant. So we will try to capture the whole market by giving more high Quality products on less prices, which may discourage any other industry to come into market. But right now there is no need to make any change in our prices. Because when we conducted a research, we find that Pakistan flooring and facing was being done at a pace of 450,000 square meters every day. Out of which we are just covering the demand of 120,000 square meter. As WTO is being imposed in 2005. so we should be ready to compete foreign entry, specially China, who is still dumping in our market, after the implementation of WTO it will make him easy to sell its product on more less prices. We have to find other markets, where the demand for our product is very high. We also have to make ease access to distribution channels. We also have to utilize our full production capacity, which decrease our fixed costs, so we can sell our product in market on less prices. 2. The bargaining power of buyersEXPORT MARKETING 20
  21. 21. Now the bargaining power of buyer is low, as there in no domestic industry of Granite Tiles because we are not meeting the demands for Granite Tiles. But when we will get competition in market, then bargaining power of buyer will be high. And we will have to take measures according to buyers demand at that time. 3. The bargaining power of suppliers The power of suppliers tends to be a reversal of the power of buyers. Where the switching costs are high e.g. switching from one supplier to another. In our Company case power of supplier is high, as we are the only manufacturer of Granite Tiles in the market. But when new competitor will enter we will not be in position of high power. 4. The threat of substitutes As our Granite Tile have low threats of its substitutes, like Marble, Tile, mosaic (chips). Because Granite Tile is available on nearly about the same price on which Marble is available in market, and it don’t have any competitor in quality and hardness from its substitutes (as it is 100 time harder than Marble). 5. Competitive rivalry. This is most likely to be high where entry is likely; there is the threat of substitute products, and suppliers and buyers in the market attempt to control. This is why it is always seen in the center of the diagram. This is the amalgamate of all 4 key areas. Specially entrance of new firm causes to increase competitive rivalry. As new entrance of any competitor cause to increase bargaining power of buyer, and decrease the bargaining power of Supplier. MARKETING STRATEGY Ansoffs MatrixEXPORT MARKETING 21
  22. 22. The Ansoff Matrix; Growth Vector Components Products Existing New Market Penetration Product Development • Improve service (By giving • Expand designs schemes Existing 50 years warrenty) • Introduce new product (Le • and quality Porcellane (Platinum)) • Repositioning Markets Market Development Diversification • Internationalising & • Master Tiles is manu- Globalization facturing a new tile for New • Expand abroad exports, which is harder in strength but can be mold/ • Expand north-west of UK pattern easily, and can • Online shopping easily cut by cutter. PORTER’S VALUE CHAIN MODELEXPORT MARKETING 22
  23. 23. Primary ActivitiesInbound LogisticsHere Raw materials of Granite Tile (Soil, chalk, clay) are received from companyssuppliers ( from Mianwali and Mirpur Khas). They are stored at stores until they areneeded on the production. Goods are moved around the organization. We have our owntrucks which are used in raw material movement from one place to another.OperationsGoods are manufactured at Master Tiles & Ceramics G.T road Kamoke. Each and everyfunction from its production to its storing in ware houses and loading is performedthrough machines. We have used most advanced Robotics Technology. And using asoftware to manipulate the whole industry.Outbound LogisticsThe goods are now finished, and they need to be sent along the supply chain to retailers orthe final consumer.Marketing and SalesIn true customer orientated fashion, at this stage our organization prepares the offering tomeet the needs of targeted customers. This area focuses strongly upon marketingcommunications and the promotions mix.ServiceEXPORT MARKETING 23
  24. 24. This includes all areas of service such as fixing/installation, after-sales service, complaintshandling, training and so on. We are providing fixing assistance and a 50 year warranty toour worthy customers.Support ActivitiesProcurementThis function is responsible for all purchasing of goods, services and materials. The aim isto secure the lowest possible price for purchases of the highest possible quality. They willbe responsible for outsourcing (components or operations that would normally be done atorganizations)Technology DevelopmentTechnology is an important source of competitive advantage. Ourcompany install the world’s most advanced plant of granite tiles,which is only working in Pakistan at Master Tiles & Ceramics. Itreduced the cost of labors. We are also offering our products oninternet through E-Marketing. For this purpose we aremaintaining a Website http://www.mastertiles.com . we are alsoaoffering consumer rights protection policy (CRPP)which dealswith allHuman Resource Management (HRM)Employees are an expensive and vital resource. Our organisation manage recruitment andselection, training and development, and rewards and remuneration. our mission andobjectives of the organisation are the driving force behind the HRM strategy. OUR HRM Manager Mr. Farhat (MBA in HRM)Is responsible for all hiring and firing of labor.Firm InfrastructureOur firm’s chief Executive is Sheikh Mahmoood Iqbal. And there are 7 full-timeDirectors. 1 General Manager, and 1 Assistant Genral Manager, and in management thereare more than 3 Chartered Accountants. In our firm there are 1000 employeesEXPORT MARKETING 24