1. The Trends in Marketing Mix
MMaarrkkeettiinngg MMaannaaggeemmeenntt MMoodduullee –– HHDDBBMM 1144..11
GGrroouupp MMeemmbbeerrss::
 Aathil Ahamed (HDBM – F - 141004)
 Ajutharsan S. (HDBM – F - 141005)
 M.Y.M. Ihthisam (HDBM – F - 141062)
 A.B.A. Asam(HDBM – F - 141015)
 Mohamad Nilshad (HDBM – F - 141092)
26th
September 2014
LLaannkkaa TTiilleess PPLLCC ((LLTTPPLLCC))

2. 1
Trends in Marketing Mix of Lanka Tiles PLC
Contents
Trends in Marketing Mix of Lanka Tiles PLC ..........................................................................1
Introduction to Lanka Tiles PLC ...............................................................................................2
Vision.....................................................................................................................................2
Mission...................................................................................................................................2
Marketing and Sales of LTPLC .................................................................................................3
Key Efforts to Develop Export Markets ................................................................................4
Innovation and New Product Developments .........................................................................4
Marketing Plans which are taken by LTPLC.........................................................................5
SWOT Analysis Related to Sales and Marketing ..................................................................5
Strengths.............................................................................................................................5
Weaknesses ........................................................................................................................6
Opportunities......................................................................................................................6
Threats................................................................................................................................6
The Marketing Mix of LTPLC ..................................................................................................7
Product ...................................................................................................................................7
Form of the Product ...........................................................................................................8
Levels of the Product .........................................................................................................8
Life Cycle Stage of the Product .........................................................................................9
Product Mix........................................................................................................................9
Price .......................................................................................................................................9
Place.....................................................................................................................................10
Local Market....................................................................................................................10
Foreign Market.................................................................................................................11
Locations..........................................................................................................................12
Other Distribution Strategies ...........................................................................................12
Promotion.............................................................................................................................13
Promotion Mix.................................................................................................................13

3. 2
Introduction to Lanka Tiles PLC
Lanka Tiles PLC has been producing and exporting high quality ceramic tiles for over thirty
five years. The market leader and premier ceramic tile manufacturer in Sri Lanka, LTPLC is
a major contender in the highly competitive international arena, supplying quality tiles to
discerning markets. Their product quality and designs are second to none. They have the
capacity to produce approximately 2.3 million square meters of tiles annually. Sri Lanka is a
beautiful and diverse country that has an abundance of raw materials for the production of
their tiles. They are strongly committed to investment in Research & Development in order
that their tiles continue to meet the exacting manufacturing standards of the international
marketplace. They are equally committed to the well being of the environment and have
many policies in place to help the company be on the cutting edge of green tile production.
Their tiles conform to ISO 13006. A wide range of tiles in a variety of colors, textures and
sizes including special trim tiles and decorated tiles are manufactured by the company today.
Vision
“To be a leading producer of wall and Floor coverings and related products for the local and
international markets”
Mission
“The production and marketing of exceptional quality products at optimum affordability “
“To manufacture and market quality ceramic products for comfortable living”

4. 3
Marketing and Sales of LTPLC
In the middle of the decreasing demand for local tiles and growing trend favoring the use of
floor tiles as a substitute for tiles, LTPLC took positive steps to re-evaluate the strategic
marketing focus of the company during 2013. Underscored by the need to differentiate the
tile offering from the floor tile portfolio, the company stepped up both above-the-line and
below-the-line advertising to promote both mainstream offerings and the function range for
tiles.
In achieving this, LTPLC continued to follow the distribution model embarked on in the year
2012, which concentrated on developing the franchise showroom network as the key sales
channel. Taking the LANKA TILES brand to a wider island-wide demographic, saw the
opening of 8 new branded franchise showrooms at strategic locations during 2013, adding up
to a total of 37 showrooms across the country. Notably, both the interior and exterior of all
new showrooms were designed to showcase the unique presence of the LANKA TILES
brand identity. In doing so, the company capitalized on the expertise of the Royal Ceramics
group to further augment LTPLC’s capabilities and develop the showroom concept as the
core sales medium. New showrooms were thus outfitted with enhanced display and
merchandising capabilities to promote a more customer centric layout. Captioning the same
theme at all showrooms across the country also meant that most existing showrooms needed
to be revamped and upgraded to conform to the new dynamic outlook. Having commenced
the process in 2013, many of the existing showrooms have already been upgraded as at the
end of the current year.
As part of the Endeavour to serve the low-end mainstream markets, LTPLC’s island-wide
dealer network was also maintained during the year. Although no new dealers were added to
the existing portfolio, the company concentrated on developing a more versatile dealer profile
and aligning the dealer model to serve the goals of the company in a more effective manner.
Efforts to service the high-end and position offerings of the LANKA TILES portfolio became
a reality with the commissioning of the first up market concept showroom in Jawatta.
Showcasing the complete range of high-end tiles, the ultra-modern showroom laid out on par
with international standards, uses high-tech graphic imagery to create a complicated, yet
customer-friendly atmosphere.

5. 4
The devastating response from customers, regarding the new showroom, has encouraged the
company to look into the possibility of opening similar showrooms at other key locations as
well.
Amidst shrinking local markets, LTPLC also turned its focus on improving its prospects in
the export markets as well. Continuing with efforts launched in the previous year, the
company made concerted effort to strengthen its presence in selected foreign markets and
territories.
Key Efforts to Develop Export Markets
 Commissioning of the first ever overseas showroom in Bangalore to showcase the
mainstream offerings under the LANKA TILES brand to the Indian market.
 Participation in the Coverings 2013 exhibition held in Atlanta, Georgia USA in a bid to
penetrate the US and Canadian markets.
 Participation at the Cerasaie 2013 exhibition in Bologna, Italy to help promote the brand
in the European markets.
Innovation and New Product Developments
In its pursuit to stay a step ahead of the market, LTPLC continued to improve the design
capabilities of the company in tandem with evolving market trends. Hence, during the year, a
new state-of-the-art DURST digital printing machine was purchased to enhance the surface in
20cm x 40cm size profile of tiles and offer a robust range of options for customers to choose
from.
Consequently, a range of new designs were released to the market, key among them was the
revolutionary and new “Evolve, Habitat and Marfil collections in 30cm x 45cm size and
Mandiraya collections in 30cm x 60cm size and Cubrose, Claudia, Origami, Lays collections
in 20cm x 30cm size collection being value added concept tiles, these collections promotes a
range of structured designs to suit multiple surfaces and layout options. Moreover, efforts to
cater to all market segments saw a more comprehensive range of sizes and colour offerings
for each collection.

6. 5
Marketing Plans which are taken by LTPLC
 Understanding corporate goals and objectives of the company.
 Making strategies for their actions in order to meet the goals.
 Budgeting.
 Planning the actions.
 Implementation of the actions.
 Monitoring the progress.
 Getting feedbacks.
SWOT Analysis Related to Sales and Marketing
According to LTPLC, their SWOT differs from season to season. Therefore, they make the
SWOT Analysis habitually as much as possible. Their last SWOT Analysis which was made
at the end of financial year 2013/2014 is shown below;
Strengths
 They have a strong distribution force all over the country as well as in foreign countries.
 Their brand name is well known among the people globally.
 They mostly use machineries and raw materials with most advanced technology which are
imported from Europe in order to maintain their higher quality.

7. 6
Weaknesses
 Moving to advanced technological changes accordingly (Changing according to the rapid
environmental changes).
 Getting adapted to the new changes of designs and fashions.
 Inability to allocate capital to make rapid changes in designs and fashions.
 Producing new styles immediately in order to beat the competitors.
 Incapability to fulfill the total requirements of the entire customers.
Opportunities
Though there are low opportunities in Sri Lankan Market, there are some opportunities in
foreign countries.
 As African countries are in the developing stage, there is a high demand for Lanka Tiles
than their own productions (There is demand in countries such as Oman and Dubai also).
 In countries like India, the middle class people who are considered as the majority of its
population mostly concern about foreign made tiles like Lanka Tiles.
Threats
 The express changes and developments in fashions and life styles of the customers.
 Lack of availability of several raw materials for their productions. In case of importing the
raw materials from foreign countries, the cost tends to increase.
 Importations of foreign products reduce the demand for their products.
 Cost for energy sources such as fuel and electricity gets increased.
 Threat of new entrants into the current globalized market (Anyone can enter into the market
at any time).

8. 7
The Marketing Mix of LTPLC
The marketing mix is a business tool used in marketing and by marketers. It is often crucial
when determining a product or brand’s offer and associated with the 7P’s (Product, Price,
Place, Promotion, People, Partners and Physical Evidence) to address the different nature of
services. But in Sri Lanka, most of the business firms (including LTPLC) mainly focus on
key 4P’s (Product, Price, Place and Promotion).
Product
In cycle with the evolving local tile market, dramatic changes were made to the product
portfolio during the year 2013. Traditionally geared for the mid-income segment of the local
consumer market, the company forcedly diversified product offerings to provide all
customers ranging from upscale to budget market segments. Particularly given the growing
popularity of cut cement flooring as an alternative to tiling, this form of creative
diversification was considered to be a timely move.
Boldly deviating from established tile profiles, the Company embraced more innovative
models to cater to the highly responsive market for porcelain tiles and large format tiles. Due
in large part to technology investments made in the previous year, Porcelain tile production
commenced in the current year. The preemptive decision to install highly specialized edge
rectification and chamfering equipment, the year before proved to be an invaluable
investment leading to LTPLC’s timely entry into the porcelain tile arena. Furthermore, the
decision to invest in large format tile technology, during the year under review, added new
vigor to existing product offerings. Meanwhile, supported by investments in digital printing
technology made during the current year, nineteen high-quality new designs were introduced
to complement the existing LANKA TILES product portfolio, offering an unprecedented
range of affordable options that cater to a broad spectrum of customer segments. This being
the widest ever selection offered under the LANKA TILES umbrella, the range now consists
of options to suit the discerning tastes and lifestyle requirements of all customer segments.
Seeking continuous improvement in design concepts and capabilities has always been a
priority for LTPLC. To fulfill this need, in August 2012, the Company sought the expertise of
a full time Italian design specialist.

9. 8
Triggered by the growing number of commercial and residential high-rise complexes in
Colombo city and the country’s flourishing tourism sector, the market for upscale flooring
has continued to bloom in the recent past, highlighting the need for an even greater
availability of options. To fulfill the selective needs of this emerging market, LTPLC took
steps to source tiles and marble flooring directly from Europe. Of particular note is
introduction of the Impronta and Baldocer brand of European tiles and marble flooring
options from Greece which offer sophisticated elegance and effortlessly combines tradition
and modernism in its product range.
Meanwhile, a range of good quality affordable tiles was sourced from China to supplement
LANKA TILES’ variety of selections and service customers seeking more affordable options.
Form of the Product
Tiles are durable products which can be used by the consumer for long period of time.
The product “Lanka Tiles” is used by both consumer and industrial categories. They have
produce for individuals those who need and who come for their showrooms, and they have
many sub dealers to sell their product to market.
These tiles are known as shopping products, because normally shopping products are;
 Less buying frequency with compare to convenience products.
 Customer involvement is taken place.
Levels of the Product
Core level – Customers can see, touch and identify the product.
Actual level – In Lanka Tiles they have many designs and colors to fulfill the customer
needs.

10. 9
Life Cycle Stage of the Product
In Lanka Tiles they have many products and all have been passed the introductory stage
where some are in growth stage and a few are in declining stage also.
Therefore, the marketing department does their marketing by their brand name; their brand
name is in maturity level therefore they use to market their product by their brand name.
Product Mix
They have doing the product mix based on demands, they have changed their sizes, designs
for tiles.
Price
According to Lanka Tiles marketing manager,
There are two types of pricing strategies in the market. They are;
 Cost based pricing strategy.
 Market based pricing strategy.
Lanka Tiles is always using market base price strategy when they are pricing, they are not
relied the cost. Some time they have to sell it on cost price also based on the market demand
and sometimes they can sell it on a good margin.
Certain segments in the market they buy products because of the price. If the process is law
they do not want to buy and if the price is high they will buy.
When they developed the product they have to identify for whom to produce, the segment is
willing to pay high price they will sell it on high price rather than looking of the cost. And the
segment is willing to pay law price they have to sell it on law price because of the
competitors.

11. 10
The higher price segment is moral and the other hand they do not want to give away and the
law segment also important if they do not cost them the competitors enter to that point. So
they have to protect the market without allowing the competitors.
So Lanka Tiles always uses market base pricing strategy.
Are the customers of Lanka Tiles satisfied with the pricing strategy of them???
Yes of course,
Customers satisfy Lanka Tiles price strategy.
That’s why Lanka Tiles successfully make their business all over the island.
Place
The place is the main component of marketing mix out of four. To create the right marketing
mix for Lanka tiles the goods must be in the right place at the right time. Making sure that the
goods arrive when and where they are wanted is an important operation. A suitable marketing
mix helps to achieve the organization goal easily.
Although figures vary widely from product to product, roughly a fifth of the cost of a product
goes on getting it to the customer. 'Place' is concerned with various methods of transporting
and storing goods, and then making them available for the customer. Getting the right product
to the right place at the right time involves the distribution system. The choice of distribution
method will depend on a variety of circumstances. It will be more convenient for some
manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell
directly to retailers or customers. The Lanka tiles have five categories of distribution channels
that are showrooms, franchise showrooms, Lanka Tiles factory outlet, consignment agents,
and warehouses.
Local Market
As we know the LTPLC is the very popular tiles manufactures in Sri Lanka. They cover the
total island through the supply chains. They have 30 show rooms were customer can come
and purchase directly. And they appoint distributors dealers in main areas.

12. 11
ForeignMarket
The Lanka tiles is the largest company which produce all kind of tiles such as flow tiles and
wall tiles etc. They supply tiles not only for Sri Lanka but also to the foreign countries .it
around 20 countries such as male, Singapore and Malaysia and India. They have a very good
demand in foreign markets due to very high quality and unique designs. Even though India
produces various tiles, the Lanka tiles export there because some customer would like to
purchase foreign brands. That is a good opportunity to Lanka tiles plc.

13. 12
Locations
They have so many distribution channels the direct marketing and indirect marketing
channels .so the customer can buy their products in various place of Sri Lanka. They have the
following locations.
 Top of Form Bottom of Form Showrooms (02)
 Franchise Showrooms (37)
 Lanka Tiles Factory Outlets (01)
 Consignment Agents (06)
 Warehouses (03)
Other DistributionStrategies
Depending on the type of product being distributed there are three common distribution
strategies available:
 Intensive Distribution
Used commonly to distribute low priced or impulse purchases products tiles are never use
commonly so that strategy not suitable to them.
 Exclusive Distribution
It involves limiting distribution to a single outlet. The product is usually highly priced, and
requires the intermediary to place much detail in its sell. They would like to cover the
whole island so they should have so many outlets.
 Selective Distribution
A small number of retail outlets are chosen to distribute the product. Selective distribution
is common with products such as computers, televisions household appliances, where
consumers are willing to shop around and where manufacturers want a large geographical
spread.

14. 13
If a Lanka tiles PLC decides to adopt an exclusive or selective strategy they should select a
intermediary which has experience of handling similar products, credible and is known by
the target audience. But here that strategy can’t use because ceramic items need to display
separately.
Promotion
Modern market calls for more than just developing a good product, pricing attractively and
making it available to target customers. Companies must also communicate with their
customers to promote their product or service.
PromotionMix
 Advertising: Any form of media form of non-personal presentation and promotion of idea,
product or service by an identified sponsor.
Advertising Media
oBroadcast Media: - Television, Radio.
oPrint Media: - Newspapers, Magazines.
oOutdoor Advertising: - Hand bills, Electricity and Ordinary bill boards.
oOnline Advertising: - Websites, Search engines, Social medias (Facebook, Twitter, etc).

15. 14
 Personal Selling:It’s the interpersonal arm of the promotion mix.
Selling Process
oIdentifying prospective customers.
oTarget the customers and buyer trends.
oApproaching the customers.
oDemonstration.
oSolution to customers’ problems.
oPutting in an order.
oFollow up.
 Sales Promotion: This is considered as the major activities of the company.
Process of Sales Promotion
oIdentifying and winning new business opportunities within the defined market sectors.
oDeveloping a marketing team to implement the strategy and deliver based on objectives.
oCarrying out effective research and intelligence into competitor’s products and other
trends.
oOverseeing and managing financial budgets.
oConstantly improving business development.
oEnsuring the achievement of a high standard of service.
The sales promotion tools include;
o Money back guarantee.
o Discounts.
o Special offers.

16. 15
 Public Relation:This concern in building good relationship with the company’s various
public by obtaining favorable publicity and building up a “Corporate Image”.
Measures in Public Relations
oHelping to educational institutes (E.g. Sri Lanka Institute of Architects).
oMaintaining relationships with local community.
oOrganizing sports activities (E.g. Volleyball, Cricket).
oEngaging in other CSR projects/activities.