International Marketing Plan. Assignment
ETICS - External Thermal Isolation Composite System.
Atlas Aval from Poland to Ireland International Marketing Plan.
2. INTRODUCTION 2
FROM POLAND TO IRELAND 2
THE COMPANY ENVIRONMENT 4
COMPANY BACKGROUND 4
PRODUCT /SERVICE HISTORY 5
COMPETITORS 6
ENVIRONMENTALANALYSIS 9
SWOT ANALYSIS 10
PESTE ANALYSIS 11
7 PS - PRODUCT, PLACE, PRICE AND PROMOTION, PHYSICAL ENVIRONMENT, PEOPLE, PACKAGING, PROCESS
21
PRODUCT 21
PLACE 22
PRICE 23
PROMOTION 24
PEOPLE 25
PACKAGING 25
PHYSICAL ENVIRONMENT 26
INTERNATIONAL MARKETINGPLAN 26
OBJECTIVES 26
SITUATIONAL ANALYSIS 27
COMPETITORS POSITIONING 30
MARKET CHANNEL ANALYSIS 31
UNIQUE SELLING PROPOSITION BY SEGMENT 32
MARKETINGMIX 33
PRODUCT STRATEGY 33
PROMOTION STRATEGY 33
PRICESTRATEGY 33
PLACESTRATEGY 33
CUSTOMER 33
BENCHMARKING 34
RESEARCHRESULTS 36
CONCLUSIONANDRECOMMENDANTIONS 40
REFERENCES 41
APPENDIX 1 42
APPENDIX 2 44
QUESTIONNAIRE 44
3. 2
Introduction
The company of my choice for the International Marketing Project is Atlas/Aval Group, a
manufacturer of construction chemicals, mortars, adhesives and thermal insulation systems
ETICS – a Polish firm, active on international market. It offers its products under a few
different brands. One of them is AVAL – a brand that has been registered for EU market. At
present, products with this brand are available in Romania, Scandinavia, Germany and Great
Britain.
Construction industry related chemicals and adhesives. All of them want to snatch a big chunk
of Construction related adhesive business from the existing market which is increasing rapidly year
on year. They have different strategy to cater competition, to satisfy their customer’s, to
increase their sales and market share.
The purpose of this international marketing plan is expansion to Irish market.
From Poland to Ireland
4. 3
Couple reasons of my choice:
I speak polish so the research was done in two languages – two sources of info.
I am certified installer of AVAL thermal insulation systems (ETICS)
AVAL products are approved and certified by ETA (European Technical Approval)
and NSAI (National Standards Authority of Ireland) – so the first crucial step is made
I have done deep primary research about the company, and about the Irish market - for
purpose of my business plan project
I have been in Poland this year for training organised by AVAL GROUP, so I made
primary research of both markets
The two countries (Poland – Ireland) are well known to me
I have 15 years of experience in construction industry
Job opportunity as a distributor or trainer
ATLAS/AVAL global opportunities – is easier to enter U.S. market from Ireland than
from Poland
The strategic geographical location of Ireland on the central axis between American and
European continents makes this country the heart of world trade. Today Ireland is one of the
world’s most global countries in terms of political, economic and technological integration. Over
the last decade, the Irish economy has grown faster than anywhere else in Europe.
(Graphic downloaded fromwww.ida.ie)
Having strong background I moved to the marketing research process.
The task of marketing research is to provide management with relevant, accurate, reliable, valid,
and current information. Competitive marketing environment and the ever-increasing costs
attributed to poor decision making require that marketing research provide sound information.
Sound decisions are not based on gut feeling, intuition, or even pure judgment.
Detailed research is vital for the process to succeed. The international marketing process is
slightly different because I have to take other things into consideration such as customs,
language and cultures of people in country that survey is being conducted.
5. 4
The Company Environment
Company background
Atlas is a producer of construction chemicals. The company was founded in 1991 and in just few
years achieved a leading position in Polish construction chemistry market. Atlas is well known
and well liked in Poland - 80% of the Polish people recognise the brand. Atlas has created new
and powerful brand - one of the most valuable Polish brands - starting from scratch.
Atlas Group has many-year-experience in external insulation in countries of severe climate – in
central and Eastern Europe, as well as in, Holland and Scandinavia.
The financial results of the Atlas Group place it among the best-managed Polish companies. The
sales for the year 2007 reached over 981 million zlotys (244,161,822.03 EUR). The concern
employs nearly 2000 people.
The basis of the initial market success of the Atlas Group was to find and land a large niche
market and skilful marketing, led by Marius and Roman Rojek Jurkowski. Among others this
company has developed a recognizable logo and symbol (the stork in the nest).
From the beginning of its activity ATLAS/AVAL made successful efforts to prove its
corporate social responsibility. The group has realised this objective through its two public
benefit organisations - Atlas Charity Foundation and “Atlas Sztuki” art gallery.
Atlas Group Strategic Aims
Continuous Pursuit of Improving ATLAS Company financial status
Improving of Company's Methods of Management
Taking Care of Prestige of the ATLAS Trade-mark
Human Source Potential Developing and Implementation
Environmental Pollution Prevention
Implementation of Planned Domestic Trade
Implementation of Planned Foreign Trade
Developing Quality of Products and Increasing of Their Stock According to the
client requirements
Projects and Improving of the Products Concerning Economic, Safety and
Environmental Issue
Taking Care of Machinery
Ensuring the Due Fluidity of Production and Storage
Ensuring the Financial Resources for Company Current Activity and
Development
Timeline
1991 Three civil engineers fund small firm called ATLAS, to produce adhesive
mortar for ceramic tiles. The area of its activity is Lodz and neighbourhood of the city.
1992 Coming of a Gdansk commando: two experts of trade and marketing;
ATLAS became a nationwide firm.
1993 "Teraz Polska" emblem for ATLAS - turnover rose from
13.8 million zlotys (3,434,692.30 EUR).
6. 5
•(1993) to 58.6 million (1994); [14,584,997.73 EUR]; the most rapid increase in
history of the firm, so far.
1999 Opening of the plant in Dabrowa Gornicza - the first of four super modern
plants, located in Special Economic Zones.
2003 The first ATLAS plant abroad: in Dubna, near Moscow, Russia.
2005 ATLAS among the most powerful brands in Poland - year after year, three
times in a row, it wins "Superbrand Polska" title.
Product / service history
Four areas of activity
More than 60 percent Atlas Group's revenues come from sales of construction chemicals
produced in the cement-based mixtures (such as tile adhesives and grouts, waterproofing, stucco,
thin film, paint, facade systems, insulation, flooring and mortars). The second segment of its
business are anhydrite and gypsum products (coats, adhesives, plasters) - from the sale gets about
30 percent influence. Less than 10 percent falls on bituminous products, and in addition - the
extraction of raw materials. Atlas Group currently employs about two thousand workers and owns
13 companies, 12 production plants and five mines of raw materials.
7. 6
Main Groups of Product
Atlas Group together with its subsidiaries, manufactures construction chemicals. Its products
include materials for fixing ceramic and stone tiles; priming, washing, and protective
materials; and mortar additives, self-levelling screeds and floors, ready-to-use mortars,
sealing materials, renders and thermal insulation systems, paints, wallpaper materials, and
gypsum products. The company also provides bituminous solvents, bituminous dispersion
agents, ecological agents, adhesive mortars, anti-moisture horizontal insulation agents and
fungicides, system of floors and impregnates, repair masses, and wood impregnate and anti-
adhesion agents, as well as mineral and epoxy adhesive mortars and grouts, and acrylic
sealers. In addition, it offers quartz molding sands, glass-making sands, technical sand, quartz sand
for adhesives, technical and special quartz grits, quartz flours, kaolin, and dolomite aggregates
and flours; and spatula gypsum, surface finishing coats, gypsum adhesives, gypsum plasters,
and plaster aggregates. Further, the company mines gypsum stone; distributes and trades
electric power, and provides water; and excavates and processes anhydrite and cechstein white
gypsum, as well as manufactures products based on these raw materials, such as anhydrite, anhydrite
flour, gypsum binders, and anhydrite binders. It serves customers in Denmark, Finland, the Great
Britain, Holland, Norway, Romania, the Russian Federation, and Sweden.
Atlas/Aval Group consists of fifteen business entities. The concern has ten plants, and raw
materials for their products come from its own four mines - of gypsum, anhydrite and quartz sand.
The adhesive mortars for tiles remain the leading Atlas products, but today it also offers
products indispensable to modern building technologies - e.g. thermal insulation systems, self-
levelling subfloors, insulation and sealing materials and stuccos. Within next few years Atlas
plans to strengthen its position of important player in gypsum products market, the most recent
investments of the Atlas Group are also oriented on cement - the concern purchased limestone
deposit near Opoczno and plans to build there mine cement processing plant and cement mill.
In 1997, "The Financial Times," in conjunction with the consultancy company “Price
Waterhouse” scored Atlas, one of the most respected companies in Central and Eastern
Europe.
The company is holding ISO 9001 (Quality Management System), ISO 14001 (Environmental
Management System), BS OHSAS18001 Occupational Health and Safety Management System)
certificates.
Competitors
The competitive edge in Ireland is well known to Atlas/Aval from domestic market. Main
competitors are leaders on EU market and global market.
• Saint-Gobain Group, the world leader in the habitat and construction markets,
designs, manufactures and distributes building materials, providing innovative
solutions to meet growing demand in emerging economies, for energy efficiency andfor
environmental protection.
Saint-Gobain solutions span from self-cleaning windows and photovoltaic glass to smart
insulation systems, water supply systems, solar solutions and building materialsdistribution.
8. 7
The market leader in all their activities, they offer solutions to the major challenges of
energy efficiency and environmental protection.
Against the backdrop of a global economy still recovering from the crisis, the Group
returned to growth in 2010, reporting a 1.9% increase in like-for-like sales
(comparable Group structure and exchange rates). This performance was driven by
robust momentum in emerging countries and Asia and by vigorous trading in
industrial markets.
On the Irish market they are offering theirs product under two brands. One of them is Isover
well recognised in construction industry from theirs quality insulation products.
Name of the second brand is Weber a leading manufacturer of easy to apply products in
the facades, construction mortars, flooring systems and tile fixing markets.
Weber is a recognised manufacturer and innovator of easy to apply product in the
external wall insulation, renders, tile fixing and construction mortar markets. Weber is a
leading player in the construction products industry.
Weber works hard to build long term "win-win" open and friendly business
relationships with its customers, so they feel part of the Weber family.
The brand is presenting activity in 42 countries using large network of points of sales
supported by more than 200 production units.
Saint-Gobain markets:
Saint-Gobain has now clearly defined itself with regard to the habitat and construction
markets, in the broadest sense, having stated its new ambition to become world leader on
the habitat and construction markets, providing innovative solutions to the key challenges
of Group age: growth, energy and the environment. The immense potential of this sector
certainly offers Saint-Gobain opportunities for developing its different activities.
9. 8
Saint-Gobain doubles the size of its mortars activity by acquisition of Maxit Group
Saint-Gobain in figures 2010
A manufacturing or retail presence in 64 countries. European and worldwide leader in all
business sectors.
- Saint-Gobain employs 189,200 people -
€40.1 billion in sales
- €1.3 billion in net income
- €3.0 billion in cash flow
- €1.5 billion in capital expenditure
Steady growth since 1998
(Graphics downloaded from-http://www.saint-gobain. com)
Grafton Group plc is an independent, profit growth oriented company operating
primarily in the Merchanting, DIY Retailing and Mortar Manufacturing markets in
Britain and Ireland.
G rafton’s strategy is to build on its strong market positions in Merchanting, DIY
Retailing and Mortar Manufacturing, to develop in related markets and to grow in
businesses with which it is familiar.
The Merchanting segment operates from 522 builders and plumbers merchanting
branches.
It trades under the Buildbase, Plumbase, Jackson and Selco brands in Britain and
under the Heiton Buckley, Chadwicks and Macnaughton Blair brands in Ireland.
These brands have leading national and regional market positions. In Britain,
Grafton operates the third largest builder’s merchanting business and is among the top
five plumber’s merchanting businesses.
The Merchanting segment also operates the largest merchanting business in
Ireland. The network of merchanting branches mainly supply trade customers
engaged in residential, repair, maintenance and improvement projects.
10. 9
The Retailing segment incorporates the largest DIY retailing business in Ireland,
trading nationally from 41 stores under the Woodie’s DIY and Atlantic Homecare
brands, and a seven store kitchens business that trades under the In-House and
Panelling Centre brands. The Manufacturing segment comprises the largest dry
mortar business in Britain where it operates from nine plants and also includes the
manufacture of mortar, plastics and windows in Ireland.
Grafton Group plc has strong national and regional market positions in the
Merchanting, DIY Retailing and Mortar Manufacturing markets in Britain and
Ireland. In 2009, sixty eight percent of Group turn over was generated in the UK. The
market sectors that Grafton operates within offer attractive growth prospects, with
potential to earn above average returns on capital invested.
CPI EuroMix is the leading name in dry mortar in the UK and Ireland. Company silo
system has revolutionised the market for dry mix products, delivering consistently
high quality materials and excellent service.
As part of Grafton Group plc, they have the backing of a successful and dynamic
building materials company.
In just a few years, CPI has built an extensive network of dry mix manufacturing
facilities. Their products meet the most demanding requirements for performance and
aesthetics. They use the finest raw materials and the latest production technology,
operating to the highest quality standards.
Henkel operates worldwide with leading brands and technologies in three business
areas: Laundry & Home Care, Cosmetics/Toiletries and Adhesive Technologies.
Founded in 1876, Henkel holds globally leading market positions both in the
consumer and industrial businesses with well-known brands such as Persil,
Schwarzkopf and Loctite.
Henkel, headquartered in Düsseldorf, Germany, has about 48,000 employees
worldwide and is among the most internationally aligned German-based
companies in the global marketplace.
One of Henkel construction brand is Ceresit
Ceresit - large building projects require, above all, one thing: a lot of experience and
the latest generation of fully developed products. Over the 100 years of its brand
history, Ceresit has proven both. And this is why people all over the world recognise
brand Ceresit.
Ceresit Product Categories
Tiling
Flooring
Waterproofing
External Thermal Insulation Composite Systems (ETICS)
Sealants & PU Foams
Environmental Analysis
In my project Atlas/Aval Group is planning on doing business in Ireland, so knowledge of the
investment environment and information on the legal, accounting and taxation framework are
essential to keep Group on the right track.
11. 10
SWOT Analysis
1 ETA (European technical approval ETA) The European technical approval enables the manufacturer to place the
CE marking on the construction product and thus the access to the European market.
2 NSAI (National Standards Authority of Ireland) is Ireland’s official standards body. We operate under the National
Standards Authority of Ireland Act (1996)and we are accountable to the Minister of Enterprise, Trade, Employment and
Innovation.
Wideselectionof
product
Certified
by NSAI1,
ETA2
Extensiv
e network
of
production
Experienced
ininternational
marketing
Own
natural
resources of
rawmaterials
Arecognizable
brand
No trade barriers
Solid
positioninthe
market
Reputation
Own transport
Strongcapital
Strengths Weaknesses Opportunities Threats
No English version
of productportfolio
Weak or no
opportunities for
acquisition
Slow and not
effectivemarketing
campaign
Lack of
training in
entered
countries
Lackof
trainingprogram
in English
Enrichment
ofsociety
Taxfree
export
from Poland
„Opendoor”
toEU Market
Sagnifica
nt
investment
Increased
needfor
housing
(based on the
demographics,
baby boom)
Marketvolatility
New regulations,
Custom
er
bankruptcy
Changing
currencyexchange
rates (Strong
euro, weakstate
ofthezloty)
Rising prices of
petrol /increasing
transport cost
Exploatation
oftheenvironment
Frequent
changesin
legislation
Economic crisis
12. 11
PESTE Analysis
P - Political
E - Economic
S - Social
T - Technological
E - Environment
Irish Political Environment
Ireland is governed as a parliamentary democracy and constitutional republic. It is one of the
6 . 0 0 %world's most developed countries, and is ranked fifth in the Human Development Index, first in
the Economist Intelligence Unit’s quality-of-life index, and sixth on the Global Peace Index.
The country is also highly ranked for press freedom, economic freedom and democracy and
political freedom. It is one of the world's most sustainable countries, ranking
fifth from bottom in the Failed States Index. Ireland is a member of the OECD, WTO and UN.
4.00%(http://en.wikipedia.org/wiki/Republic of Ireland)
Irish economy – an overview
In the third quarter of 2010 there was an annual decrease in employment of 70,900 or 3.7%.
2.00%The unemployment rate increased from 13.2% to 13.6% over the quarter. However output growth in
2010 was -0.3% in real GDP terms, driven in significant part by the downturn in construction
investment and by the effect of the overall international economy over much of the year. Inflation
in consumer prices averaged -1.6% in 2010. The prediction for Irish output growth in 2011 and 2012
is not quite as favourable against the backdrop of a contraction in the economy in 2010. However
Irish living standards, as measured by a metric like GDP
0.00%output at purchasing power parity (PPP), is ranked 6th place among the top countries globally by
the World Bank.
Irish Economic Growth Chart
(Created in Ms Excel – data from table nr 1)
-8.
13. 12
Ireland – Poland Trade
In recent years trade between Ireland and Poland has enjoyed spectacular growth with high
profile Irish companies taking advantage of the many profitable business opportunities that have
arisen since Poland joined the European Union in 2004. This trend looks set to continue as Poland
is due to benefit from EU funding of €67 billion it has been allocated up to 2013.Poland’s
economy grew by 6.8% in 2007 and 5% in 2008 leading to impressive levels of foreign direct
investment, falling unemployment and low inflation. Growth slowed to 2% in 2009 however, this
was very impressive given economic challenges globally. Poland ranked 5th in Europe and 1st in
the CEE Region in terms of new foreign investment in 2008 (Ernst & Young) and Ireland holds 14th
place on the list of the biggest foreign investors in Poland (€2.2bn) and is the number 1 location
for Irish investment in CEE Countries.
Last year the Ireland Poland business association (IPBA) completed a review of its services which
resulted in enhanced information resources for members. First time exporters and those currently
trading in Poland can now access the “information vault” section of this website which holds in
excess of one hundred documents including “how to” guides, investment opportunities, market
research studies, tax and regulatory alerts, property reports and other detailed information.
Main Points – Economy
A competitive economy in many respects through low corporation tax, overall productivity levels,
a well-educated and young workforce and a smart approach to business regulation. Membership
of the EU, including access to an internal market of almost 500 million people. Robust FDI –
Ireland’s stock of direct inward investment is five times greater than the OECD average and the rate
of return to US owned companies in Ireland is third in the EU-15.
The IMD World Competitiveness Yearbook 2010 ranks Ireland 6th for GDP per capita ahead of
the US (8th), France (14th), Singapore (19th) and the UK (21st).
Ireland’s Educational System ranks 7th in the world for Higher Education achievement
(Source: IMD Yearbook 2010).
Prime office rents have fallen sharply: Dublin has fallen from 20th to 33rd in terms of office
occupancy costs (Source: DTZ),
Dublin now ranks 42nd most expensive city in the world, down from 16th in 2008 (Source:
Mercer).
Ireland ranked first in the Euro-zone of Best Countries for Business
(Source: Forbes 2010).
Irish housing output
Housing is an important driver of building materials sales. However, since 2007, the Irish
housing sector has been in severe decline, with 2008 the most difficult year in many decades. In
2008, the total number of planning permissions for houses and apartments fell to its lowest level in
ten years, to just 67,584 units3. Moreover, in 2008, the Irish Construction Industry Federation
(CIF) estimates that 35,000 homes and apartments remain unsold in Ireland.
In January 2009, employment in the construction sector stood at 190,000, down 90,000 from its peak
in Q3 20074. As a result, the industry is going through a severe readjustment.
3This showed a 20% decline on 2007.
4 Source: Construction Industry Federation (CIF);www.cif.ie
14. 13
This retrenchmentis having a significant effect on the demandfor constructionmaterials
products. House completions over the period 1990-2008 are shown in Table 6.
(For Table 6 go to Appendix 2)
There is limited data available for 2009 so far but the trends suggest that activity level continued to
decline in the opening months of the year, with the number of house registrations down 73% in the
first quarter and total completions down by 47% in the first two months5.
Measures announced in the April Budget, including the new income levy, changes to mortgage interest
relief and speculation about a future property tax, will all impact on potential buyers ability to raise
a mortgage, notwithstanding the favourable reductions in house prices, mortgage interest rates and
consumer prices to date.
Repair, Maintenance and Improvement (RMI)
In 2008, the value of the Irish Repair, Maintenance and Improvement (RMI) sector was €8.62
billion (Table 7). This was an 8% increase over 2007.
Table 7: RMI output in the Republic of Ireland [constant 2007 prices] (2005 – 2009f)6
However, the current economic recession is putting some companies and businesses under
pressure to reduce their cost base. Investment in repair and maintenance works is likely to be
reduced or postponed unless deemed to be necessary. Thus the total volume of repair, maintenance
and improvement (RMI) expenditure on building and construction is projected to decline by 15%
this year, made up of a 10% reduction in housing RMI, a 13% reduction in general contracting
RMI and just over an 18% reduction in civil engineering RMI7
5http://www.dkm.ie/uploads/pdf/reports/2009%2005%20Prelim%20Construction%20Forecast%20fo %20DEHL G.pdf
6http://www.environ.ie/en/PublicationsDocuments/FileDownLoad,21120,en.pdf7http://www.environ.ie/en/Publicatio
ns/StatisticsandRegularPublications/ConstructionIndustryStatistics/FileDownLoad,20339,en.pdf
15. 14
Exchange rate Polish Zloty (PLN) to Euro (EUR)
The graph below shows historical exchange rates between the Polish Zloty (PLN) and the Euro
(EUR) between11th march 2011 and 10th April 2011
EUR/PLN Exchange rate - Historical data:8
Poland’s currency, like the currencies of other European emerging markets, has significantly
strengthened. The zloty now trades for about 3.83 to the euro, and most analysts predict that the
zloty will continue to appreciate.
Social
Social and cultural factors influence all aspects of consumer and buyer behaviour. The
differences between these factors in different part of the world can be central
consideration in developing and implementing international marketing strategies.
Social and cultural forces are often linked together. Whilst meaningful distinctions between social
and cultural factors can be made, in many ways they interact and the distinction between the
various factors is not clear.
Atlas/Aval main culture barrier is language. They have to be careful during the promotional
campaign to do not alter the intended meaning. Packaging
There are several social and cultural factors that influence a customer’s perception, attitude and
understanding to give product or communication and so affect the way a consumer behaves in
the buying process. The more common influences I present on the graphs below.
8http://www.tititudorancea.com/z/euro_to_pln_exchange_rates_polish_zloty.htm
16. 15
Social and cultural factors that influence a customer’s perception
All these Affects Buyers
Rules of
behavior
Knowledge
Knowledg
Cultural
Message
Morals
Symbols
Religion
Education
Cultural
Forces
History
Family
Language
Prioritizing
Wants
Consumer
Decision
Process
Decision
Making
Selecting
17. 16
Though the country’s culture is quite homogeneous, Irish businesspeople, especially those among
younger generations, are usually experienced in interacting and doing business with visitors from
other cultures. However, that does not always mean that they are open-minded. When negotiating
business here, I must realize that some people may expect things to be done ‘their way.’ In
addition, many prefer to deal with other Irish people rather than with foreigners.
Building lasting and trusting relationships is very important in Ireland and can be crucial for your
business success. People in this country usually want to do business only with those they know, like,
and trust.
Families play an important role in Ireland’s society and business life. Many companies are family
owned or controlled. Families oft en extend into powerful networks that include friends,
business partners, and others. Becoming integrated into such networks through personal
relationships is vital to doing business in the country.
(Article Source:http://EzineArticles.com/4814330)
Contemporary Ireland is multicultural and multilingual, a vibrant society living in a beautiful, safe
environment.
Demographics facts:
Over the period of a few short years Ireland has moved from being a country of emigration to one of
immigration. However, the total number of immigrants into the State in the year to April 2008 fell by
26,000 to 83,800, while the number of emigrants has shown a marginal increase on the previous year
to 45,300. As a result net migration is estimated to have fallen from 67,300 in the year ending April
2007 to 38,500 in 2008.
The total number of immigrants into the State in the year to April 2010 fell by 26,500 to 30,800, while
the number of emigrants has shown a slight increase on the previous year to 65,300. As a result net
migration is estimated to have fallen from -7,800 in the year ending April 2009 to - 34,500 in the
most recent period. The effect brings the population estimate to 4.47 million in April 2010.
According to the Census undertaken in April 2006, Ireland’s population is 4,239,848 persons,
compared with 3,917,203 persons in April 2002, representing an increase of 322,645 persons or 8.2%
in four years. The population of all four provinces increased between 2002 and 2004. Since the
Census was last undertaken in 2006 Ireland’s population has increased further to 4.47 million.
Population by Age Group and Region, April 2010 (000’s)
Region 0–14 15–24 25–44 45+ Total
Border 110.9 64.4 147.8 177.7 500.7
Dublin 241.2 145.9 426.5 393.8 1,207.3
Mid-East 128.2 62.5 181.6 141.8 534.1
Midland 63.7 32.1 84.2 93.3 273.3
Mid-West 79.9 48.7 112.9 133.2 374.6
South-East 110.0 62.6 150.1 179.3 502.2
South-West 135.1 80.9 199.9 232.1 648.1
West 90.0 51.7 131.9 156.8 430.3
Source: Population and Migration Estimates, CSO, Sept. 2010
18. 17
One of the reasons why so many companies choose Ireland is because of the unique
workforce – Ireland has the youngest population in Europe with over 35% under the age of 25
years.
Future Availability of workforce % Population under 25 in the years 2010 & 2015 9
Country % Population under 25
2010 2015
USA 34.4 33.4
Ireland 33.9 32.9
France 30.6 29.9
United Kingdom 30.6 29.8
Netherlands 29.8 29.0
Europe 28.1 26.6
Hungary 27.1 26.0
Portugal 26.1 25.2
Czech Republic 26.7 25.4
Germany 24.6 22.8
Spain 25.3 25.2
Japan 23.5 21.9
Ireland’s total investment in knowledge (including investment in public and private spending on
higher education) increased by an average annual rate of over 10% over the past decade compared
with averages of around 3% by the EU and the OECD.
Surveys show that foreign investors consider the quality and the ‘can do’ flexible attitude of Irish
people to be two of the country’s greatest advantages.
Flexibility and Adaptability of Workforce 2010 when faced with new challenges
Ireland 7.38
USA 7.10
Netherlands 6.88
UK 6.11
Czech Republic 5.64
Germany 5.45
Japan 5.45
Portugal 5.14
Spain 4.80
France 4.33
Hungary 3.89
Skilled Labour 2010 (country score)
Ireland 7.56
USA 6.96
Japan 6.87
Germany 6.82
Netherlands 6.69
Czech Republic 6.42
France 6.10
9 Source: Population Division of the Department of Economic and Social Affairs of the United Nations
Secretariat, World Population Prospects: The 2008 Revision.
19. 18
UK 6.00
Spain 5.16
Portugal 4.94
Hungary 4.65
Source: IMD World Competitiveness Yearbook,
2010.Main Points
The 2006 Census was the first in which the population of Leinster exceeded two
million persons. Overall the increase in the Leinster region since 2002 (+9.0%) was
higher than that for the State as a whole (+8.2%). The populations of both Kildare
and Meath both increased by over a fifth.
The population of all counties apart from Cork City increased between 2002 and
2006. In total nine counties experienced an increase of 10% or more.
The population as a whole has reached over 4 million for the first time – at
4,470,700 persons.
Ireland’s dependency ratio is among the most favourable in Europe. Ireland has
one of the youngest populations in Europe with 35% under the age of 25.
Over the twelve-month period to Sept. 2010 the labour force decreased to reach
2,150,500.
The population of the Dublin region is projected to increase by over 1/2 million
persons in the period to 2031.
Technological issues
Specifically Ireland is geared towards securing projects in high-value manufacturing, global
business services and research, development and innovation. Ireland is also developing the
emerging areas of clean technology, services innovation, and convergence
Telecommunication
Ireland has one of the most advanced and competitive telecommunications infrastructures in
Europe. The telecommunications market is fully de-regulated and numerous companies have entered
the market. Large investments in recent years have resulted in state-of-the-art optical networks with
world class national and international connectivity.
The Information and Communications Technologies sector in Ireland attracts global investment,
with seven of the world’s top ten companies operating here. Ireland’s ICT sector incorporates the full
range of high-tech activities including Research and Development, High- Value Manufacturing,
Shared Services, Supply Chain Management, Software Development and Technical Support.
20. 19
Electricity
Sample Electricity Charges for Industrial Electricity in Ireland
Medium Voltage
10kV/20kV
High Voltage
38kV 110kV
Standing Charge €8.750 €117.360 €21.222
Summer
Charge per kVa
€0.0460 €0.0277 €0.0314
Winter
Charge per kVa of MIC
€0.0274 €0.0268
Source: ESB
International Industrial Electricity Prices 2010 (per kWh)
Country US$
Ireland 0.169
Hungary 0.159
UK 0.135
Spain 0.125
Germany ----
Poland 0.119
France 0.106
US 0.068
Source: Key World Energy Statistics, International Energy Agency, March
2010.Water
The cost of metered water for industrial use in Ireland varies by county. In addition, most local
authorities have a charge for meter rental. Again this varies with most charging below €126.
Some local authorities also have a minimum charge (c. €60).
National Infrastructure
Ireland is serviced by a small network of ports and airports that provide services along a
number of corridors, defined as the northern, central and southern corridors
The main seaports are located in the South and East, with only Dublin and
Cork having both Ro/Ro and Lo/Lo capabilities – Dublin dominates the market with
75% of traffic.
The airport network consists of three major airports operated by
AerRianta and several regional airports in dispersed locations. Dublin is the main
international gateway to/from Ireland accounting for over 77% of all passengers, and
71% of all freight traffic
Cross Channel traffic between Ireland and UK is the most important sector.
21. 20
Some 83% of all trailer traffic has final destinations in the UK with a further 15% of
all trailer traffic using the UK as a land bridge for accessing mainland Europe. Only
1% of trailer traffic is shipped direct to mainland
National Landside Access
Key issues for landside access to Ireland’s ports and airports:
Travel time fluctuations experienced by road hauliers accessing Dublin Port due to
traffic congestion – the “reliability issue”;
Peak period traffic congestion in the vicinity of Dublin Airport;
Low levels of public transport provision to the main ports and airports;
A lack of rail freight facilities at some major ports and the underutilisation of such
facilities at most ports; and
Poor accessibility of regional airports.
Planned National Landside Improvements
There are a number of infrastructure improvements planned to alleviate these landside access
constraints, including:
Significant investment in road infrastructure nationwide as part of the
implementation of the National Development Plan, including the Dublin Port
Access Tunnel and M50 highway. This is significantly reducing journey times
within Ireland,
Planned improvements to public transport within Dublin, to relieve congestion,
and to Dublin Airport as set out in the DTO Strategy. 2000-2016 “A Platform for
Change”
International Transit Times (Door to Door) 2010
Irish Port Destination Port Times
Dublin London 24-48 hrs.
Dublin Amsterdam 48 hrs.
Dublin Brussels 48 hrs.
Dublin Paris 72-96 hrs.
Dublin Berlin 48-72 hrs.
Dublin Milan 72-96 hrs.
Dublin Prague 72-96 hrs.
Dublin Poland 96 hrs.
22. 21
Environmental
The Future is Clean Technology
Ireland is a 21st-century modern island surrounded by the age-old power of wind
and tide. As such, Ireland is a natural environment in which new clean
technologies can be developed and the search for renewable energies is
rewarded. Ireland’s potential for Clean Technology is enormous and
theGovernment is firmly committed to creating the conditions in which Ireland can
become a world leader.
Two key areas of focus are Ocean Energy and Wind Energy and a series of
supportive measures will be a strong driver of growth. Clear targets have been set
and work on major infrastructural initiatives is already under way.
7 Ps - Product, Place, Price and Promotion, Physical
Environment, People, Packaging, Process
Product
How should the company design, manufacture the product so that it
enhances the customer experience?
Sellable &
Distributable
Marketing
Product
success
Design
Useful &
Desirable
Engineering
Posible&
Feasable
23. 22
Product is the physical product or service offered to the consumer. Product includes certain aspects
such as packaging, guarantee, looks etc. This includes both the tangible and the non- tangible
aspects of the product and service.
Atlas/Aval continuously innovate its products according to the changing preferences and
standard of its customers.
Atlas Group will bring with it reputed brand (Aval), world class construction chemical quality and
excellent customer specific product features.
Place
Where should be the product be available and the role of distribution channels?
The place mainly consists of the distribution channels. It is important so that the product is
available to the customer at the right place, at the right time and in the right quantity. There
is a certain degree of quality and standard that a customer feels each time he works with Aval.
There are certain value propositions that Aval offer to its customers based on their needs. Aval
offers standard product, good quality and great service. Now brand have online architect room
at their web portal. There are certain dedicated areas for architectswhere they can design, quote,
order, work with projects etc.
Supply chain chart flow for Aval external and internal insulation systems
24. 23
Price
What should be the pricing strategy?
Pricing includes the list price, the discount functions available, the financing options available etc.
It should also take into the consideration the probable reaction from the competitor to the pricing
strategy. This is the most important part of the marketing mix as this is the only part which
generates revenue. All the other three are expenses incurred. The price must take into consideration
the appropriate demand-supply equation.
Aval will use a very catchy punch lines “Build it better”, “Build it warm”, “Be smart build
green”, “Do it better!!!” or “You can do it better” This is to attract the middle and high class
consumers.
QUALITY
LOW
ECONOMY
SKIMMING
HIGH
PENETRATION
PREMIUM
L
O
W
P
R
I
C
E
H
I
G
H
PRICING STRATEGY MATRIX
25. 24
Example
Aval has certain value pricing and bundling strategies such as mobile testing labs,
product & construction consultant, service etc to increase overall sales volumes.
Promotion
What is the suitable strategy and channels for promotion of the product?
The various promotion channels will be used by Aval to effectively communicate the product
information are given above. A clear understanding of the customer value helps decide
whether the cost of promotion is worth spending.
€
26. 25
There are three main objectives of advertising for Aval are to make people aware of an item, feel
positive about it and remember it. The right message has to be communicated to the right
audience through the right media. Aval does its promotion through television, hoardings and
bus shelters. They use print ads and the television and radio programmes are also an important
marketing medium for promotion.
To get trust of the Irish community Aval will sponsor sport events or football team, and Aval Horse
will be actively promoting the brand in Irish Horse Racing competition.
People
How to converge the benefits of internal and external marketing?
Aval understands the value of both its employees and its customers. It understands the fact that
a happy employee can serve well and result in a happy customer.
Aval continuously does Internal Marketing. This is important as it must precede external
marketing. This includes hiring, training and motivating able employees. This way they serve
customers well and the final result is a happy customer.
The level of importance has changed to be in the following order (the more important people are
at the top):
1. Customers
2. Front line employees
3. Middle level managers
4. Front line managers
Packaging
The very important element in the marketing mix for AVAL Company is the product
packaging. Develop the habit of standing back and looking at every visual element in the
packaging of your product or service through the eyes of a critical prospect. Remember, people
form their first impression about you within the first 30 seconds of seeing you or some element of
your company. Small improvements in the packaging or external appearance of your product or
service can often lead to completely different reactions from your customers.
I think that Aval packaging is well designed is eye catching and consistent.
My first impression was – high quality professional product. No improvements required.
27. 26
Physical Environment
Making the physical environment as welcoming & as reflective of the “product/service
brand” as possible.
In this case, Aval must trust their distributors because they will create an image of the
company. Especially in the case of distribution of ETICS insulation systems where technical support
and warranty of the product are key in creating a good corporate image and customer perception.
Another factor affecting the image of the brand is professional installation of their products.
In case of the thermal insulation systems perfection is crucial. Therefore, they pay special
attention to the quality of training conducted by them. Aval carefully selects and trains its
distributors in order to meet customer requirements in terms of product quality and service. Aval
have to implement distribution and customer management strategies for the effective continual
monitoring of these factors.
International Marketing Plan
Objectives
Achieve 10% of market share o Streamlining product
portfolio o Strengthening Aval brand o National program
for building insulation with EU funding
Improve customer portfolio o
Extend customer portfolio o Key account
management for large clients
o Fidelity programs
Secure 90% of accounts
receivable o Insurance (coverage) for
customers
o Revised credit control procedure
o Warranty letters
28. 27
• Maintain margin
o Maintain value - price level
o Channel management control
o Cost reduction (hard to achieve)
Situational Analysis
Despite the economic collapse in Ireland, sales were better than expected in 2010 despite declining
10%from 2009and nowat similar levels to2003.Improvement is unlikely innew buildfor several
years, although like manyother markets, refurbishment activity is likely to continue growing.
New growth areas and niche opportunities
As the economy gears up to meet the challenges presented by the climate change, sustainability
and green agendas, it is important to identify new growth areas and niche opportunitieswhichwill
notjustsustainemployment butprovidere-trainingopportunities.W14OeAsRP
eAplRIlIIsA1EdAEFIDnAtRAbeAP EGAinAt1EAGYeORpP MARIAfilIMPl’ buildings towards the end
of the boom period, the adjustment now underway should re-focus spare
capacity towards investment in energy efficiency improvements in the existing built stock and the
development of green building technologies.
714AGRYelQP HAsAE DIRCaOAI; CelJ AI; IITHIn1 $ FIiRnAPORAIEED-2020 (NEEAP) recognises
that there are substantial gains to be made in the energy performance of the built stock, both residential
andnon-residential.Thisisbeingconfirmedbyresearch undertakeninIreland andoverseas.
The extension of the Building Energy Ratings (BER) system to second-hand buildings being soldor
rentedshouldhighlighttheshortcomingsofthestock,andencourageimprovements,especially as these
buildings must compete withnew buildings that are completed toa much higher energy efficiency
standard. The proposed new carbon tax will have a reinforcing impact in this regard.
Given the substantial spare capacityin the construction sector at the moment, there is a strong argument for
Government intervention to incentivise energy efficiency improvements in the built stock, and indeed
continue its programme of investment to tackle the energy efficiency of its own extensive estate of
buildings.
(According to estimates produced in the Infrastructure Investment Priorities 2010-2016
Report from the Department of Finance (July 2010) and the Construction Industry Council
Submission to Government, Jobs and Infrastructure – A Plan for National Recovery, March
2009.)
29. 28
Situational Analysis – Macroeconomics
Factors Key findings Implication for Aval
Political & legal
environment
o taxes may increasein order to
help the Irish budget
o bad debtors law frame
o incoherent political strategy o
lack of updated building
surveys and statistics
o population income will decrease →
decreased consumption
o problem with payment for credit
sales
o difficult to draw long term strategyo
difficult to estimate the market
Economic
Environment
o International financial crisis o
Increaseofinterestratesfor
house loans
o Deductiblesand VAT
reimbursement issues
o Depreciation of local currency
o Projects block → consumption
decrease
o Housing demand decrease
o Impact on cash flow
o Higher cost for loans and import
materials
Socio – cultural
Environment
o Decreasing population
growth rates
o Aging population
o Increase of unemployment
rates
o language
o les potential (construction)
customers
o reduce customer income
o packaging and training
Technological
Environment
o high – tech availability
o EU quality requirements
compliance
o Research& Developmentvery
expensive
o R&D grants
o Inline with Aval product strategy o
Competitive advantage
o Competitive edge due to
investment in R&D
Competitive
Environment
o High competitive edge
o No entry barriers
o Highly competitive environment o
New entrants threat
Situational Analysis – Market
Market
> Insulation market estimated for 6bn euro
> 2010 total market: 0.5 millions tons of mortars and adhesives (7% increase)
> 2011 forecast:
6% increase (optimistic scenario)
No increase or slight decrease (realistic scenario)
All competitors planned investment in production
capacities > Might be postpones
Market share expected to be affected by new entrants (BAUMIT,
ADEPLAST brands from Eastern Europe countries) > Import still at a low
level (approx. 20% of total national consumption)
30. 29
Situational Analysis – Market segments
Trade Contractors End users
Wholesalers
(Dealers)
Retailers
(including DIY)
International &
national
contractors
Local &
mini
contractors
Self builders
-buy large volumes
-resale to retailers &
end users
-infrastructure for
distribution
- Buy either from
wholesalers or directly
- resale to end users thru
warehouses or directly
- some have logistic means
- large companies
Developing
residential areas or
big industrial
buildings
- medium
construction
companies
- private person
performing repair/
Works/ medium
construction
works on their
own or with team
Opportunities & Threats
- difficult to control
flow
- take share of the
margin
- useful for covering
small retailers
-very high margins
from competitors
- difficult to cover
- widely national spared
- negotiation power (big
retailers)
Newcomers (DIY): B&Q,
Home Base, Atlantic
Home
- living standards will
force them to invest in
warehouses
- needs: price, special
products & just in
time deliveries
- important
customers on the
market => influence
- easily
influenced
- price over
quality
- easily changing
strategies and
buying habits
- important
market share on
national level
- highly
fragmented market
- choose product
based on price or
recommendation
from masons or
installers
- weak knowledge
in the construction
field
Competitors – strategy analysis
Competitor
Market
Share(%)
Strategy Impact on Aval
Saint
Gobain
33
- wide range of products
- aggressive pricing policy -
volume oriented
- focused on direct distribution
- Price pressure for Aval customers
and construction companies
Grafton
Group plc
29
- leadership position ion ready
mix and dry mortars
- volume oriented
- focused on direct distribution -
aggressive price policy
Henkel 18
- special productwith high
margin
- dealer based distribution
- very aggressive pricing policy
- Pressure on product development -
technical support service
32. 31
Market channel analysis
Target
Markets
Target
Segments
Governmentbodies,
Architects
Designers
Influencers Business to Business Trade End Consumer
Contractors
Dealers, Retailers,
Modern trades
Masons,home owners,
Cert. installers
- Aval-new to IE
market, Quality,
optimum level
quality/price
- Saint Gobain- client
oriented, quality
product, French
company, Weber and
Isover brands,
flexibility
- Henkel- Quality,
optimum level,
excellent sale and
support team, price
negotiation, innovative
-Aval-well known to
Eastern European
contractors, new on
irish and West EU
market
-Saint Gobain-
leadership, best image,
innovative, quality,
very good sale team
and technical support -
Henkel- Quality,
optimum level,
highest prices, very
good service, wide
product portfolio
- Aval-new to IE
market, 45% of
Eastern European
emigrants recognise
the brand
- Saint Gobain-client
oriented, good
product quality,
French company,
webber and isover
brands
-Henkel- Quality,
optimum level,
highest prices, very
good sale team
- Aval-new to IE
market, 45% of
Eastern European
emigrants recognise
the brand
- Saint Gobain-
leadership, best
image, innovative,
quality, very good
sale team and
technical support -
Henkel- Quality,
optimum level,
highest prices, very
good service, long
life product
Perception
Facts
33. Unique Selling Proposition by segment
What is a unique selling proposition? The unique selling position identifies a problem in the
market, and what you are offering is the solution. This is very, very simple. Typically, a great
way to structure your unique selling proposition is to answer the question, do you know how?
Then fill in the blank with the problem. Next, offer your solution. Whatever the case might be,
offer people a simple system that they can implement today, where they can go out, ask
somebody, and get results. That is where a proper unique selling proposition will get people to do
it. It will get people to ask, how do you do that. Tell me more. The unique selling proposition is
effective, and it will peek someone's curiosity.
We want to grow with our customers. That is possible if we offer them
the right solutions to their problems and consistently satisfy their needs
End customersInfluencers
Authorities,
Designers,
Architects Homeowners,
Masons,
Cert. Installers
Trade
Dealers,
Retailers, DIY
Busines
Busin
Contrac
arget
markets
arget
gments
Leaders of
opinion able to
influence our
business and
community
We are part of your
projects
We listen, understand
and supportcommon
ideas.
Homeowners looking
for improvement of
their houses
We share yours
dreams.
We find creative ways to
make
your dreams
come true.
Family oriented
professionals lookingfor
work- leisure balance
We make your life
easier.
Our products save
your time and effort
and improve your
lifestyle.
Retail associating our
brand to
their image of reliable
suppliers
We bring value to your
business.
We help you
better serve your
customers.
Construction
companies
looking fo
quality an
flexibility
We come wh
you need us
We will cre
solution for y
project.
alue
Clients
Value
USP
alue
etwork
34. Marketing Mix
- Develop Partnership - Employs as a
- Fidelity customers programs - Recognised P
- Join product development
- Join strategic market approach - Competent a
- Continue innovation trend
- Lunch only profitable products
- maintain good quality and great service
- Value – based price strategy
- Position and be perceived as a
value – based price supplier
Product
Strategy
Price
Strategy
Custome
r
- Focused on strongest br
Enhance brand awarenes
- Participation to trade fa
- Logistic cost op
Chanel control
- Own fleet + subcont
- Right place, at the rig
right quantity
- Loyalty & fidelity p
Promo
Strat
Pla
Strat
- Tailored devel
35. Benchmarking
Benchmarking is the process of comparing one's business processes and performance metrics to industry bests and/o
Dimensions typically measured are quality, time and cost. Improvements from learning mean doing things be
After research process I identified three the best firms in the same or very similar industry, I compared the results an
companies to Atlas/Aval performance. It is very useful to learn how well the targets perform and, more importan
Strenghts / Weakness AVAL Saint Gobain Henkel
Cost of production
Low-but the production is
96 hours from target
market10
Average Cost leader
Production capacity
High–asaboveproduction
based in Poland
Average to low Average to hig
Product Quality Premium Quality Average
Highquality
perception
Brand awareness
Premiumbrandperception
on Eastern Europe market
Average
Multi-brand
approach
Premium bra
Pricing strategy
(Customer loyalty)
Value-based,Highquality
product with excellent
service support for
affordable price
Aggressiveprice
strategy
Higher prices
high quality a
technical supp
very aggressi
price policy
Technical services
(Incl. laboratory)
Highstandardtechnical
support
Good technical
supportservice Very good ser
Logistic services
Good,
Ownfleet
Average,
Externalizedfleet
Average,
Externalized fl
Direct distribution Yes Yes No
Distribution channels All segments All segments Dealers
10 International Transit Times (Door to Door) 2010 (Source: Irish International Freight Association, June 2010)
36. 35
Reasons to believe the product has chance to succeed in the
suggested market
I have done market and marketing research. The first type of research helps me to discover the
number of competitors and their market share.
Through marketing research analyses I have localize given marketing opportunity and
problems. During qualitative data collection process I discovered the root cause of failure on UK
market two years ago. The biggest reason of failure was bad designed marketing plan.
They did not consider very important factors such us:
- Resistance of English consumers to foreign brands.
- Distribution channel not defined
- Lack of product portfolio
- Language barriers - no product catalogue in English for potential customers
- Lack of strong advertisement campaign - they should know that new customers are very
expensive
- Bad research process or no research done
- Bad or no marketing mix strategy
- Lack of distribution management or distribution monitoring
- No reliable technical support
- They targeted polish professionals living in UK as a only one distribution channels -
No focus on direct distribution and potential customers
- Sales only through dealers
- No or bad situational analysis – market, macroeconomics
- Bad analysing of target market and market segments
- Probably SWOT was not made or wasn’t honest
- No exit strategy if enter the market do not succeed
- Lack of knowledge about competitors activities
- No consideration about services related to the product – Before sales service, after sales
service, delivery, availability, advice, finance, guarantees, warranties, during sales
service.
To have chance to succeed in the suggested market company must consider all those issues
which strongly affecting company healthy activities on international market
Research is the only tool an organisation has to keep in contact with its external operating
environment. In order to be proactive and change with the environment simple questions need to
be asked:
- How customer needs are changing? Can you meet these changing needs? What do your
customers think about existing products or services?
- How are competitors operating within the environment? Are their strategies exceeding or
influencing yours? What should you do?
- How are macro and micro environmental factors influencing your organisation? Again how
will you react?
During my research I found market niche for house insulations service and products in
connection with Global Green Trends, exactly Home Improvement Projects. Within 10 years time
1 million homes will be improved with Irish government financial support.
Aval is a manufacturer of high quality thermal insulation systems with rendering. It is very
effective but expensive way to improve energy efficiency and living comfort of home. The
37. 36
system works very well in all weather conditions so will perfectly fit for Irish market. The
system can be installed only by trained professional installers of ETICS11.
Atlas/Aval provides 3 days intensive training for construction trade professionals.
Manufacturer is giving 30 years warranty on the product.
In Ireland actually are 24 certified contractors of ETICS systems (is far too little in order to
realize this plan within 10 years).
Atlas/Aval researchers over the past few years were working on a new type of plaster who can
be applied by spraying. This method shortens the time to install the system in half compared to
the previous method. This makes the system unique in the world. Everything should be ready for
sale this summer.
Research results
In order to develop the understanding of target consumers’ behaviour and their decision- making
processes, it is essential to research your market. In broad terms, there are two market research
techniques I used to help collect the valuable data:
Direct Techniques
This kind of research involves the collection of new information by conducting research directly
with my target consumers. Direct market research techniques can come in two forms: Quantitative
Research – Which is based on sampling techniques and requires statistical methodologies. Also
commonly known as ‘survey research’, quantitative research relies upon measuring consumer
behaviour amongst large numbers of the population.
Qualitative Research – Which is based on speaking to smaller numbers of consumers about their
attitudes, perceptions and motivations to purchase. The most common form of qualitative
research is the focus group discussion.
Indirect Techniques
Indirect research techniques involve examining secondary data that has already been collected by
previous researchers.
To do qualitative survey about customer behaviour I used questionnaire of 11 questions.
What I need to know about consumer? :
Reasons to use brand / Producer
How do consumers decide?
Why do consumer prefer competition product?
How do consumers decide? – Decision making factors
How do consumers differentiate products? – Product differentiation
For use in school I decided to reach 10 people from each segment, giving a total of 40
persons. I have prepared 50 hard copies to give it out directly to the consumer.
Another 50 copies I delivered using internet (by Email, I questioned on blogs and industry
forums). After hard work I got 55 sheets back- 40 from direct delivery (most effective way), just
10 by Email, and 5 persons I reached thru blogs and forums.
I summarised the data in chart below.
11 External Thermal Insolation Composite System
38. 37
Reasons to use brand / Producer
Source: qualititive research – questionnaire
The conclusions are clearly seen. Brand awareness on very top 82 %, Irish customer likes quality
and good service support and they would pay premium price for it.
How do consumers differentiate products? – Product differentiation
Source: qualititive research – questionnaire
39. 38
How do consumers decide? - Decision making factors
Source: qualititive research – questionnaire
Why do consumer prefer competitionproduct?
Quality Perception
Source: qualititive research – questionnaire
Quality Price Ratio
Source: qualititive research – questionnaire
40. 39
Implementation and control
AchieveMarket
Share (10%)
Secure
Accounts
Receivable
(90%)
Objective
Improve
Customer
Portfolio
Maintain
Margin
Action
Warranty letters SalesManager To set up
KeyAccountmanagementfor
large clients
RevisedCreditControl
procedure
Streamlining product portfolio Marketing Manager To set up
StrengtheningAvalbrand Brand Manager Permanent
NationalProgramforbuilding
Insulation with EU funding
Insurance (coverage) for
customers
ChannelManagementcontrol National Sales
Manager
& Logistics Manager
Cost reduction Purchasing Manager Permanent
Fidelityprograms Event Manager Permanent
Maintainvalue-pricelevel National Sales
Manager
Extendcustomerportfolio National Sales
Manager
Responsible
NationalSales
Manager
KeyAccount Manager
FinancialDirector
National
FinancialDirector To set up
Deadline
Tosetup
Tosetup
Permanent
Permanent
Permanent
Permanent
41. 40
Conclusion and Recommendantions
Further global expansion is definitely possible for the Aval Group, who has pinpointed several
geographic markets into which he wishes to increase sales, including the growth areas of
Denmark, Finland, Holland, Norway, Romania, the Russian Federation, and Sweden. All of
these markets offer potential for its products and the company should be able to gain economies
of scale were it to share distribution channels with its extended business. Further expansion of the
company’s construction chemicals portfolio could not be considered in Germany, they have theirs
own oldest also quality brands. The company already has Eastern Europe operations through the
acquisition of foreign brands.
They need to take into account that in Ireland, this strategy can not be used because all the
smaller similar companies are taken by theirs competitors.
Diageo could also look to UK again for further expansion, but this time with stronger
motivation and bigger expansion investment. The company should take into account the fact that
the acquisition of the brand is much cheaper than gain a new customer.
As we all know, global warming forced the world to take firm and rapid action.
The main factor in global warming is the emission of CO2 into the atmosphere. For 28% of co2
respond trace our energy inefficient homes. The second factor is transport 38% of all global co2
footprint. As a first step those two factors must be improved as soon as possible, otherwise we will
destroy the planet soon. This fact is giving opportunity for Aval Group, in case of theirs
insulations systems. But I would recommend producing separate marketing plan for this
product because is unique and can put the company to U.S., Canada and Australia.
But the most important and most expensive step to succeed is to earn customer trust!!!
I would recommend implementing PIM (Product Information
Management)
In today’s multichannel commerce environment, product information management (PIM) has never
been so important. Having timely access to accurate, detailed and consistent product information
requires that businesses systematically control the flow of product information and release it
into multiple channels in a synchronised fashion.
Yet most companies don’t have the level of product information management they need to
improve competitiveness and drive sales. In fact, according to a recent Ventana Research
independent survey, 80 percent of companies expressed a lack of confidence in the quality of their
product information. This speaks to the lack of a sound product information management
strategy and process.
42. 41
References
1. (http://www.digitallook.com/dl/news/category/company _news?)
2. (Saint Gobain UK & Ireland CR Report Final 2010)
3. (http://www. isover.com/About-Isover)
4. (KINGSPAN GROUP PLC FINANCIAL RESULTS Year Ended 31 December 2010)
5. (Case No COMP/M.3407 -SAINT GOBAIN / DAHL, REGULATION (EEC) No
4064/89 MERGER PROCEDURE, Article 6(1)(b) NON-OPPOSITION Date:
28/04/2004)
6. (http://www.e-weber .com/en/activities/facades.html)
7. (http://www.kingspan.com/kingspangroup/products _solutions/by _sector/private _affor
dable housing/introduction/)
8. (http://www.insulation.kingspan.com/ireland/)
9. (http://www.cso.ie/)
10. [www.cro.ie - Companies Registration Office (CRO)]
11. (www.enterprise-ireland.com - Enterprise Ireland)
12. (http://www.environ.ie/en/Publications/StatisticsandRegularPublications/ConstructionIndu
stryStatistics/)
13. www.nsai.ie
14. (http://www.irishtimes.com/business/markets/)
15. (http://www.esri.ie/UserFiles/publications/20080623 1 14553/QEC2008Sum.pdf Quarterly
Economic Commentary – Summer 2009; Alan Barrett, Íde Kearney & Martin O’Brien, The
Economic & Social Research Institute)
16. [(http://informatorbudownictwa.pl/)- Polish Database of companies and products-
construction industry]
17. Henkel Annual Report- “information for our shareholders.pdf”
18. (http://www.henkel.com/SID-9F3EBA91-74083832/press-media-relations-1 2019. htm)
19. (https://www.cia.gov/news-information/index.html)
20. (www.seai.ie)
21. (http://www.entrepreneur.com/marketing/marketingbasics/index.html)
22. SOCIAL INSURANCE IN POLAND information, facts (www.zus.pl)
23. www.cia.com
24. www.investorcalendar.com
25. The Annual Report Service(www.orderannualreports.co. uk)
26. “OnTarget: The Book on Marketing Plans – How to develop and implement a
successful marketing plan” – By: Tim Berry & Doug Wilson
27. Goodbody Stockbrokers – “IrishConstructionConstructive Thinking ”.pdf – by
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28. (www.poland.gov.pl) – official polish government website
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43. 42
Appendix 1
Table 1: Real GDP Growth %
Country Real GDP Growth %
2009 2010 2011(F) 2012(F)
Ireland -7.6% -0.3% 1.5% 2.5%
UK -3.1% 1.8% 1.7% 2.0%
France -0.6% 1.6% 1.6% 2.0%
Germany -2.2% 3.5% 2.5% 2.2%
Netherlands -3.9% 1.7% 1.7% 1.8%
Spain -3.7% -0.2% 0.9% 1.8%
Portugal -2.5% 1.5% -0.2% 1.8%
Switzerland -1.9% 2.7% 2.2% 2.5%
USA 0.1% 2.7% 2.2% 3.1%
Japan -1.4% 3.7% 1.7% 1.3%
Euro Area -2.1% 1.7% 1.7% 2.0%
Poland 1.7% 3.8%
Source: OECD Economic Outlook No. 88, Nov. 2010.
Table 2: Inflation (HICP)
Country 2009 2010 2011(f) 2012(f)
Ireland -1.7 -1.6 0.9% 1.2%
UK 2.2% 3.1% 2.6% 1.6%
France 0.1% 1.6% 1.1% 1.1%
Germany 0.2% 1.0% 1.2% 1.4%
Netherlands 1.0% 0.8% 1.4% 1.4%
Poland 3.5% 2.6% 2.8% 3.0 %
Portugal -0.9% 1.4% 2.3% 1.3%
Switzerland -0.5% 0.5% 0.1% 1.1%
USA -0.3% 1.6% 1.1% 1.1%
Japan -1.4% -0.9% -0.8% -0.5%
Euro Area 0.3% 1.5% 1.3% 1.2%
Source: OECD Economic Outlook No. 88, Nov. 2010.
Table 3: Unemployment (% of Labour Force)
Country 2009 2010 2011(f) 2012(f)
Ireland 11.7% 13.6% 13.6% 12.6%
UK 7.6% 7.9% 7.8% 7.6%
France 9.5% 9.7% 9.5% 9.3%
Germany 7.4% 6.9% 6.3% 6.2%
Netherlands 3.4% 4.1% 4.4% 4.3%
Poland 11.0% 11.8% 12%. 11.8%
Portugal 9.5% 10.7% 11.4% 11.1%
Switzerland 4.4% 4.4% 4.3% 4.1%
USA 9.3% 9.7% 9.5% 8.7%
Japan 5.1% 5.1% 4.9% 4.5%
Euro Area 9.3% 9.9% 9.6% 9.2%
Source: OECD Economic Outlook No. 88, Nov. 2010.
44. 43
Table 4: Exports/Imports of Goods and Services
Ireland 2007 2008 2009
Imports
€63,486m €57,585m €45,061m
Exports
€89,226m €86,394m €84,239m
Trade Surplus
€25,741m €28,810m €39,178m
Source: External Trade, Central Statistics Office, Jan. 2011.
Table 5: Exports/Imports of Goods and Services
Poland 2009 2010
Import €95,501.11m €91,568.56m
Export €94,425.71m €84,179.01m
Source: Polish Central Statistics Office socio-economic situation Mar. 2011