1. (MASTER TILES AND CERAMICS LTD.)
Undertaken By
M. AZAM NISAR
SHEHZADA AWAIS AMIN
FAISAL NAEEM BUTT
Presented To:
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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)
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3. DEDICATION
Dedicated to
Faculty & Students
GIFT UNIVERSITY,
Gujranwala
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4. ACKNOWLEDGEMENT
First of all we are highly thankful to ALLAH Almighty who helpful us
to fulfill the assigned project. Secondly, we dedicate this project to our
parents, who guide us on every step during our student career. They set up to
meet every challenge in every walk of life. We are owed to our worthy and
respectful teachers who taught so luminously and bestowed creative effort,
mental enhancement that enables us to fulfill this task. Especially, we are
obliged to Sir KHURRAM AZIZ FANI who encouraged and gave us mental
robustness to complete this project.
Lastly, we are thankful to the management of MASTER GROUP OF
INDUSTRIES who provide us all the necessary information and helped us for
the completion of this project.
AWAIS SHEIKH
M. AZAM NISAR
FAISAL NAEEM
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5. PREFACE
Now a day’s business is the only legal way to earn money. But business is not
an easy job. To maintain a business is a very difficult job, especially in this
competitive world when you find very tough competition on each step. Now a
days manufacturing of a quality product is an easy job but to sell/ market it is
a 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 to
analyses different environment of you target market, then it enables you to
market you product over there. Still many people may feel like they do not
understand how to market their product. To have a better understanding of
Business marketing, it would be better to look at the basic concepts and
important steps of Marketing.
The documentation of our project includes different information about a large
scale business. That how it analyze the all environments of marketing for the
export marketing of Master Granite Tiles in United Kingdom Market. All
necessary steps are discussed briefly in this project.
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6. TABLE OF CONTENTS
Topics Page
1 COMPANY PROFILE 8
2 MARKETING ENVIRONMENT 10
3 PEST ANALYSIS 12
I. POLITICAL FACTORS 12
II. ENVIRONMENTAL FACTORS 13
III. SOCIO-CULTURAL FACTORS 14
IV. TECHNOLIGICAL FACTORS 18
4 SWOT Analysis 19
5 PORTER’S 5 FORCES MODEL 20
6 MARKETING STRATEGY 22
7 Ansoff's Matrix 22
8 PORTER’S VALUE CHAIN MODEL 23
9 MARKETING PLANNING 25
10 MARKET SEGMENTATION 26
11 Target Marketing 30
12 MARKET POSITIONING 31
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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. )
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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:
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9. Master Sanitary Fittings was come into being in 1982, Which is the very first business of
the Mster Group. In 1995 it started its tile manufacturing business and in October 2003 it
introduced 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 OFFICE
G.T. Road Gujranwala, Pakistan
PRODUCTION SITE( for Granite Tiles)
G.T. Road Kamoke, Pakistan
PRODUCTION CAPACITY: 25000 Sq. Meter
Contact Information:
Ph# 092-431-111-300-400
PABX 092-431-272770 to 272779
Fax# 0431-272127,272721
E-Mail info@mastertiles.com
Web Address http://www.mastertiles.com
Business advisors:
Legal advisor Firm Ahmad rauf Associates
Chartered Accountant Firm Illyas Saleem Company Lahore
Advertising Agency Creative Consultsant
MARKETING ENVIRONMENT
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10. It is very important that our organization considers its environment before beginning the
marketing/ export marketing process. In fact, environmental analysis should be continuous
and feed all aspects of planning. The organization's marketing environment is made up
from:
1. The internal environment e.g. staff (or internal customers), office technology, wages
and finance, etc.
2. The micro-environment e.g. our external customers, agents and distributors, suppliers,
our competitors, etc.
Micro Environment Level
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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 environment
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12. ANALYSIS
TARGET MARKET UNITED KINGDOM
1. Political Factors
The political arena has a huge influence upon the regulation of businesses, and the
spending power of customers and other businesses. What our business must consider
issues are such as:
Political environment of the target market
Political environment of U.K is very much stable, as there is no chance of military
invasion. And as their Government type is Constitutional Monarchy. It will be realy a
plus point for our company to export over there.
Government policy’s influence on laws
Govt. Policy may influence on laws regarding to tile industry because of much demand
for tiles. As we are exporting our granite tiles, so their laws regarding to flooring industry
may influence, but due to huge market demand of granite tiles the Govt. of U.K is
providing some relief to Tile exporters for U.K.
Government’s position on marketing ethics
Because of Government’s control on market moral values. Government never Discourage
the exports.
Government's policy on the economy
As the economy of U.K is stable. So Government policy on the economy is to take it
toward prosperity.
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13. Government’s view on culture and religion
If we talk about U.K Govt. view on our culture and religion, then it came to know that
they really take care of every religion specially Islam because U.K second largest religion
is Islam having more than 1.5 million people.
Government involvement in trading agreements such as EU, NAFTA, ASEAN, or
others.
Our target market’s government involved in these trading agreement, which may
influence positively for our exports, Because of UK govt.’s international organization
participation.
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 Factors
Marketers 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 rates
As it is very low in UK. Which may be 0.02%. we assume interest rate is different for
different business ethics.
Long-term prospects for the economy Gross Domestic Product (GDP) per capita,
and so on
GDP:
Purchasing power parity-- $1.528trillion
(2002 est.)
GDP-real growth rate:UK economy
increased by 0.6% in Q1 2004.
GDP- per capita: purchasing power parity –
$25,500 (2002 est.)
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14. The level of inflation Employment level per capita
Because annual inflation rate is decreasing. So it is a good indicator to do exports of tiles
over there.
CPI inflation – the Government’s target
measure – fell to 1.1% in March, from
1.3% in the previous month. The largest
downward influence on the inflation rate
came from transport costs. Petrol and
diesel prices increased by less than last
year, when there was uncertainty about
future oil supplies.
3. Socio-cultural Factors
The social and cultural influences on business vary from country to country. It is very
important that such factors are considered. For U.K market these factors include:
Attitudes to foreign products and services
U.K markets as well as customers always welcome foreign Quality Products. Because
they just want best.
Language impact upon the diffusion of products onto markets
Yes, that’s why we used English language on manual of our tile industry as well as our
packaging of the product.
Roles of men and women within society
They consider men and women not two different entities, their society give men & women
equal place.
dominant religion and different ethnic backgrounds
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15. Anglican and Roman
Catholic is dominant
religion having 40
million peoples
involvement with
Christianity. 2nd largest
Religion is of Islam
Having 1.5 million
people. This indicator
not only describe the
religion but also the
different ethnic
backgrounds of people
living in U.K.
time do consumers have for leisure
As it is the best way to market our product on internet, television, radio as there are 228
television 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 shows
that no doubt old
generation was
wealthy but with
the passage of time
new generation is
also wealthy more
than old
generation.
Population growth rate and Age distribution
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16. There were 596,122 live births
in England and Wales in 2002
- an increase of 0.25 per cent
on 2001, when there were
594,634.
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
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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 spirit
Data for the three months
ending February 2003
showed that the number
of people usually working
more than 45 hours per
week continued to
decline.
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18. 4. Technological Factors
Technology is vital for competitive advantage, and is a major driver of globalization. We
considered the following points:
Does technology allow for products and services to be made more cheaply and to a
better 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 it
installed world’s most recent advance technology and using it to meet not only its quality
standards but to exceed them. So we are getting an edge on our competitor present over
there. If we talk about price then as we know that the raw material is the main thing which
should be available for its processing, we are getting an edge that with the Grace of Allah
we are having the world’s best Soil resources on very cheap prices.
Technologies offer customers and businesses more innovative products and services
such as Internet banking, new generation mobile telephones, etc.
Their technology supports to consumers and business for more innovative product and
services. 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 customers
is increasing.
SWOT Analysis
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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 industry
is getting full advantages, it is the raw material availability in our country. As Allah give us a vast resources
of Soil, clay, chalk. Pakistani Soil is best due to its quality. That’s why we are giving our customers world’s
largest design range(250 designs) in Granite Tiles.
# Although an elaborate internet shopping system is in place Master lags behind in this market share in
online 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 MODEL
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20. Porter’s Five forces analysis helps us to contrast a competitive environment. Five forces
looks at five key areas namely the threat of entry, the bargaining power of buyers, the
bargaining 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 buyers
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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
Ansoff's Matrix
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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 MODEL
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23. Primary Activities
Inbound Logistics
Here Raw materials of Granite Tile (Soil, chalk, clay) are received from company's
suppliers ( from Mianwali and Mirpur Khas). They are stored at stores until they are
needed on the production. Goods are moved around the organization. We have our own
trucks which are used in raw material movement from one place to another.
Operations
Goods are manufactured at Master Tiles & Ceramics G.T road Kamoke. Each and every
function from its production to its storing in ware houses and loading is performed
through machines. We have used most advanced Robotics Technology. And using a
software to manipulate the whole industry.
Outbound Logistics
The goods are now finished, and they need to be sent along the supply chain to retailers or
the final consumer.
Marketing and Sales
In true customer orientated fashion, at this stage our organization prepares the offering to
meet the needs of targeted customers. This area focuses strongly upon marketing
communications and the promotions mix.
Service
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24. This includes all areas of service such as fixing/installation, after-sales service, complaints
handling, training and so on. We are providing fixing assistance and a 50 year warranty to
our worthy customers.
Support Activities
Procurement
This function is responsible for all purchasing of goods, services and materials. The aim is
to secure the lowest possible price for purchases of the highest possible quality. They will
be responsible for outsourcing (components or operations that would normally be done at
organizations)
Technology Development
Technology is an important source of competitive advantage. Our
company install the world’s most advanced plant of granite tiles,
which is only working in Pakistan at Master Tiles & Ceramics. It
reduced the cost of labors. We are also offering our products on
internet through E-Marketing. For this purpose we are
maintaining a Website http://www.mastertiles.com . we are also
aoffering consumer rights protection policy (CRPP)which deals
with all
Human Resource Management (HRM)
Employees are an expensive and vital resource. Our organisation manage recruitment and
selection, training and development, and rewards and remuneration. our mission and
objectives 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 Infrastructure
Our firm’s chief Executive is Sheikh Mahmoood Iqbal. And there are 7 full-time
Directors. 1 General Manager, and 1 Assistant Genral Manager, and in management there
are more than 3 Chartered Accountants. In our firm there are 1000 employees
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