Cement 502d6i

Cement C. Marketing Objectives and Performance Marketing Objectives Our marketing objective is to market different types of consistently high quality cement, according to the demanding requirements of the construction industry. Our strategy is to become competitive in the market through the quality and efficient operations. These objectives are in line with the changes which are happening in the environment. As the fuel natural gas prices have gone up , Maple Leaf is installing a waste heat recovery plant to recover the energy loses and to minimize the production cost and to increase the effectiveness of the natural resources. The waste heat recovery plant will be operational in 2010 and it will also capable of producing approximately 15 MW of electric power. This will be helpful in cutting down the cost of electricity to some extent. The production of the plant will not be affected in case of load shedding. New technology is being introduced which will decrease the cost of our products. By decreasing the cost of products, we will be able to compete more in the market, by having efficient operations and high product quality. Performance Analysis In of sales volumes, Maple Leaf has a production capacity of 11,700 ton per day of Ordinary Portland Cement OPC, 500 ton per day of White Cement, 1000 ton per day of Sulphate Resistant Cement SRC, 1000 ton per day of Low Alkali and 1000 ton per days of Oil Well Cement. The only competitor in of production capacity is Lucky Cement which is producing 12,500 ton per day or Ordinary Portland Cement. The market share of Maple Leaf Cement is 12.55 % in local market and about 11 % in the export market. (Source: Company Website)

MARKETING OBJECTIVES First marketing objective is to consistently market different types of high quality cement products. To provide consistently products in the market, it is necessary to make sure that some stock of the product is always available in the warehouses so that in case of any big market order, the order can be fulfilled with out any problem. This consistency can only be achieved when the production process is totally interrupted and in case of any problem, the backup is always available. The raw material for the production of cement should always be available; there must not be interruption at any time. This objective can become an opportunity when there is a sudden increase in the demand of cement in the local market. As this will happen in the next coming years when the construction of Bhasha Dam will start, there will be a sudden increase in the demand of cement products and this will be the opportunity for Maple Leaf to convert it into its strength by start its production at its full capacity.

This objective can be converted in to threat if the transportation problem is not solved and the company hasn’t enough trucks to deliver their products to the location where there is need of a heavy demand. The oil prices will also play an important role in the transportation charges. Second objective is to compete the market with quality products and efficient process. To provide the quality products, it is necessary to use the best and the latest technologies in the production process of the product. The process can be made efficient by optimum usage of resources available and by decreasing the unnecessary expenditures which lead to the higher production cost of the product. When the product is of high quality and is made through efficient process then it will be of low price with good quality. This will be the main strength of our product if we can provide the high quality product with comparatively low price. This objective will convert the weakness of Maple Leaf of high production cost of products into strength, when the process will be efficient and use that technology which is less expensive and having a good quality. These both objectives are consistent with the organization’s goal and mission. The mission of Kohinoor Maple Leaf Group is to put the customers first, flexible to the customer’s needs, give them the highest quality, and deliver them the results. These goals are achieved with the marketing objectives, when the product produced will be of high quality and produced through a efficient process, and there will be consistency in the production of high quality cement product, it will cost less and increase the profitability of the company, satisfy the need of the customers and will be delivered to the customer what he needs.

MARKETING STRATEGIES Target Markets Target Market 1: First target market of Maple Leaf is the local market, northern area of the country. The demand for the local market was increasing at a rate of 13 % capacity growth rate. This rate has been lowered down due to economic crisis but this capacity will continue to increase at the rate of 12 to 13 % for the next few years. As there is increase in the housing demand, about 40 % of the cement produced is used in the housing projects in Pakistan. Currently there is a demand of about 0.5 million houses per year but only 0.3 million houses are build each year. So there is more room for the consumption of cement products in the housing sector. The government development plans will also help the demand of cement to grow. About one third consumption of cement is used by the government development projects. The construction of Dams will generate a lot of demand for the cement in case the construction activities of dams start. Bhasha Dam will generate the maximum demand as it is a RCC Concrete Dam whereas other dams being earth fill / rock fill dams will require less cement for their constructions. There is a big project of General Headquarter GHQ under construction in Islamabad. It is a project of about 5 to 7 years and it has increased the demand of cement in the local market. Although the construction has been stopped

until the condition of country gets better, there is still a lot of demand of cement in the near future in the local market. There will be a growth of cement industry at about 13 % for the next few years. The major competitors in the local market for Maple Leaf are Lucky Cement, Bestway Cement and DG Khan Cement. (Source: Company Source) Target Market 2: Second target market of Maple Leaf is the international market. In international market, the main consumers are Afghanistan, India and the Middle East. As Maple Leaf has a brand image in the local market and in the international market as well, it is the second target market for the company. The company has its brand image for its quality products. In international market, the demand for cement products is very high; they are using the cement products in bulk quantity. The competitors for the international market are mainly Lucky Cement and the Bestway Cement. Due to the good brand image in the international market, Maple Leaf is selling their products at higher price as compare to their competitors.

Marketing Strategy: A t p r e s e n t t h e c o mp a n y i s i n a g r o wt h s t a g e i n t h e p r o d u c t l i f e c yc l e a s t h e s a l e s o f c o mp a n y i n t h e p a s t ye a r s s u gg e s t . Af t e r i t s i n t r o d u c t i o n i n B a n g l a d e s h i n 2 0 0 1 t h e company is still experiencing high fluctuating market. Holcim is now in a “question mark”stage in the BCG Growth-Share Matrix. At this point the company must give attention to its market strategy as the strategy it use will determine its future in the cement industry of Bangladesh. For its new marketing plan that we are proposing the company should use theMarket Penetration Strategy as it will be dealing with its existing products and existingmarket. Here the price will be high, but closer to the competitor’s price. This will have apsychological effect on the consumers as they tend to think that more the price, better theproduct. The company will be highly benefited from it with increasing market share. After a while when the company has a very huge market share, may be the company canafford to reduce the price by even a bigger amount and be the market leader. But the priceshould be still high from others. What is segmentation strategy of a cement company? A Cement company may obtain its segmentation strategy as follows: 1. Understanding needs and preferences of consumers -- Having housing, infrastructure, and commercial construction, as demand drivers, the company analyze the needs and preferences of consumers in these sectors. 2. Grouping customers based on their needs and preferences -- Customers with similar needs and preferences can be included in one segment.

3. Targeting the segment that the company can best meet the needs and preferences of - The Company should target the customers, of which it can meet the needs and preferences. i.e. customer needs higher- strength or low price 4. Branding the commodity -- Though being a commodity product, branding is important for a cement company. The company needs to position its brand among Architects and Builders rather than household individuals. 5. Provide required product to meet targeted customers' needs and preferences -- Delivering up to the expectations of the targeted segment.