Marketing Plan of Lucky Cement

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Marketing Strategy of Lucky Cement

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BackgroundLucky Cement Limited (LCL) is Pakistans largest producer and leading exporter of quality cement with the production capacity of 7.75 million tons per annum.It was founded in 1996 by Tabba Memons.Sponsored by well known Yunus Brothers Group one of the largest export houses of PakistanLucky Cement Limited currently has the capacity of producing 25,000 tons per day of dry process Cement.With 18% market share.

CompetitorsAttock CementFauji CementFalcon CementBest WayElephant CementMany more..

DepartmentsMarketing Channels and IntermediariesNo of authorized dealer 12No of Sub-dealer aprox 100No retailer aprox 500

Product of Lucky Cement:

1) OPC: ORDINARY PORLAND CEMENT

It is the most common type of cement which is mostly used in construction in world wide.

2) SRC: Sulfate Resistance Cement

SRC is mostly used in foundation and basement and in those areas which are located near sea.

3) BLOCK CEMENT:

Block cement is used in making blocks.

4) CLINKER: It is the primary product used in cement manufacturing process.Brands of Luck Cement:

1) Lucky Cement Regular (OPC)2) Lucky Star (OPC)2) Lucky Raj (OPC)3) Lucky Gold (OPC)4) Lucky Raj (OPC)5) Lucky Sulfate Resistance Cement (SRC)6) Lucky Block Cement (Block cement)

Export:Local and international marketsThe company has a well established distribution in Pakistan making the quality products of lucky cement avalible from karachi to kashmir and from gawadar to gilgit.In addition to the local market, the company has sucessfully established a well diversified export market tomitigate the risk of shortfall in local sales.The high quality cement has been exported to the following countries over the years:Asia:IndiaSri lankaCentral Asian CountriesAfghanistanAfrica:TanzaniaMadagascarMozambiqueSouth AfricaSeychellesComorosKenyaUgandaCompetitive EdgeGlobal Pesence: Lucky cement has been following a two fold business strategy of growing local dominance as well as increasing its share in the internatonal markets. Taking the lead on the local cement players, it is now expanding in middle east and africa. The cement grinding plant on Basra, Iraq has been sucessfully completed and has started commercial production since feburary 2014.The company has also formed joint venture with group Rawji of democratic Republic of congo to built a 1.18 million ton capacity plant in CongoLogistics at terminal Karachi Port: Lucky cement is the first and only cement company that has its own state of the art infrastructure and logistics terminal at Karachi port. The company runs a fleet of specially designed cement bulkers that carries loose cement from the Karachi Plant to the terminal on the port. These bulkers are equipped with unique compression system and are capable of carrying up to 75 of cement.Corporate Social ResponsibilityLucky Cement is activley contributing towards the welfare of the society and plays its part in areas of education, environmental awareness and health and community development. The sustainability report of 2012 Active Sustainability received the application level A+ from GRI. Lucky cement is the first and only Pakistani Company to have his honor.Education: Lucky Cement focuses towards educational assistance to deserving students by providing them with scholarships. Company has denoted generously for building an academic block at IBA.

Health: Lucky Cement provides medical assistance to underprivileged people free of cost. Lucky Cement also donated 10 million rupees to memon medical institute.Community Development: Lucky cement has participated in a number of community development projects, focusing on the needs of underprivileged residents at pezu.Environment: Lucky cement has participated in WWF earth hour initiatives to raise awareness regarding different environmental issues.

MARKETING MIX

PRODUCT: Product itself is most important part and with knowledge and by market feedback about the product suggests changes as per the market requirement in competitive market.Product Innovation: Bags weighing 25 KG shall be introduced in order to cater to the segment of Hardware, sanitary & Paint & shops.

Packaging:Manage the local market packaging inventory at Karachi Plant and Warehouses.Increase in burstage of bags has badly hurt our companys brand image, therefore strong monitoring of quality of paper bags will be done. In RAJ brand we have not received the desired results. One of the reason for its packaging. Its packaging needs further improvement as it looks very dull like an old stock at the retail outlets. Therefore, re-launching of Raj brand with new packaging is strongly recommended to increase the market share of low price segment in the Sindh Market.

PRICE: For better market positioning & to get better retention for the company competitive price must be set. Preparation and analyzing of price structure of all cement brands will be done in order to monitor the price gap between various brands at all channels and to ensure that sufficient profit margin is intact at dealers, sub-dealers and at retailers end in our brand. Manage the dealers monthly commission.

PLACEMENT:Product placing is the most essential part in the cement industry as in urgent orders & easy access or availability of the product really matters. To ensure smooth warehousing in difficult areas & nearby to customers.Effectively manage the overall warehouse operations which include:Maintain adequate Stock Levels at the warehouses.To ensure smooth dispatch operation from the warehouses.Supervision of Warehouse Data Feeding.Agreements.Payments.Insurance claimsAlso work on further improving the overall warehouse operations by making it most cost efficient.

PROMOTION:Brand promotion through different market activities e.g., Shop branding, installation of Shop boards in Karachi, Lower & Central Sindh in first phase. Arrangements of sales convention in Lower & upper Sindh and distribution of promotional items throughout the year. To brand engagement with the customers through all channels and activities, ATL Activities:Promotional Activities at macro level TVC, Sponsorship in international cricket series

BTL:In micro level, sponsorships, distribution of promotional items & giveaways in the market throughout the year.TTL Activities.With strategic approach to engage customers at multiple points. By using an integrated approach involving both ATL & BTL Activities to generate a solid perception regarding the company.Schemes & Events:Supervise the planning and implementation of sales promotion schemes, brand promotion and commercial marketing events and ensure effective utilization of sales promotional budget to achieve maximum ROI.

PEOPLE:People have the most important role for this cycle. Luckily, Lucky Cement has strong dealer network & has dedicated sales team. To further polish the skills and abilities of the sales team, guidance & support will be offered to the team members.Team Management:Delegating job responsibilities to sub-ordinates in order to achieve overall sales targets.Ensure that all the team members are directed towards the departmental and corporate goals.Provide necessary guidance / advice regarding marketing affairs to the members of sales team as and when required.

To plan and arrange daily market visits of the sales representatives in their allocated territories in order to motivate the retailers, to build up brand image and to increase brand availability and sales.Guide the team members by paying market visits along with the sales team and guiding them on field. Monitor the monthly availability report of all the district of Karachi and on the basis of it guide the team member to takes necessary possible actions in their respective markets and districts.Evaluating complaint forms and satisfaction level of the customer.To ensure implementation of monthly and annual sales plan.

PROCESS:Market Surveys:To undertake market research & surveys to gather relevant data and information to forward it to the higher management.Marketing Intelligence:To keep update with the relevant market situation in respect of competitors ex-factory prices, transportation costs, rebates / incentives scheme and trade practices.Reports:To prepare and submit following reports to the senior manager for enabling him in taking timely decisions.Weekly Market price report.Segment wise monthly sales reports.Market surveys.Annual sales report.Stock reports of all warehouses at Karachi.Monthly burstage report of paper bags at all warehousesEnsuring the following procedures throughout the year are performed accurately:Ensure that timely payments are given to all the vendors.Liaison with Taxation department for the tax matters of dealers.Liaison with legal dept. for the advertising tax and other legal matters pertaining to the warehouses.Liaise with the finance department for incentive of dealers and other payment related matters.Manage invoices of commissions.