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By Sanjay Kumar Dhal , Noida, India, +919555015324, sanjaykumardhal=gmail.

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sanjaykumardhal=gmail.com

business plan stategies for Somay Tiles >

[07TH, March, 2010]

Somany Ceramics Ltd.

The Assignment of encompassing the business plan is the pen-to-paper "rallying cry" of any start-up venture. Sound business plans not only help companies raise capital but they also help create enduring value. The research work is done, is majorly revolves around the hannel e!pansion plan and tapping of the present market and get on the business more with the basic approach of selling our manufactured products and make them readily acceptable by the end customer, the market is all together is very vast and will fetch an major sales of finished goods and ceramic tiles is perfectly set a big volume game. "nstead of perfect competition environment, the marketing growth in the segment is very steep as opportunities are huge and gigantic. To match the industry dynamism it is evident to have the simultaneous #$ush and the $ull% Strategies of marketing to sell our products, where as our products are to be well e&uipped with the channel ends, so that every initiated approach to the targeted customers will full fill with the needs raised by the help of our marketing team. 'ew entrants are very often as market is very vide open for speciali(ed and esthetic options of usages, market diversity is huge and customer aspirations change fre&uently, it is e!tremely essential to evolve and showcase contemporary products, reflecting the fast-changing "ndian lifestyle. The future of ceramic tiles lies not only in )etros and *Tyr ities, +ut also will get into ,tyr cities, -ur Strategies will be $ush and pull both as we will opt the Aggressive marketing strategy of approach for selling will focus on creating channel infrastructure then keep on developing them and get the number grow very substantially to get ma!imum channel to e&uip with our brand flow and simultaneously.

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.ith /egards, SA'0A1 23)A/ 45A6 'oida, 3.$, "ndia, 78*8999:*9;,< sanjaykumardhal=gmail.com

The ceramic tiles industry in India has followed similar trends internationally which have been characteri(ed by e!cess capacities and falling margins. ountries like )alaysia, Thailand, "ndonesia, Sri 6anka and @ietnam are setting up their own plants. hina has emerged as a major competitor. $roducers from Spain and "taly have the advantage of lower transportation costs while e!porting to 3SA and Aermany. "n "ndia, the per capita consumption is as low as :.,9 s&uare meters per person compared to hina B, s&uare meters per personC, ?urope B9 to D s&uare meters per personC or +ra(il B,.9 s&uare meters per personC. /ising disposable incomes of the growing middle class and D: million units of housing storage hold out a great potential. A major change that took over the ceramic tiles industry, was the introduction of vitrified and porcelain tiles. These new entrant product types are said to be the tiles of the future. "nternationally these tiles are already the major sellers. These categories of products account for *DE of all organi(ed sales in this industry

List of Products.
Vitrified & Porcelain, Ceramic Tiles. Granites. Mar les. Sandstone. Tiles. !"loors,#alls$. %athroom Collections. Land Sca&&ing. #all Cladding. Tra'ertine. Interiors & ()teriors. *on S+id %ottom ,&&lications Cleaning ,gents !Commercial & -omestic$ Surfactants ,dhesi'es.

Mar+et and com&etition


The marketing is being catered by both organi(ed and un organi(ed sector , but in the case of ceramic tile it majorly lies with the organi(ed sectors only apart from this granites and marbles it still a $ar ball game of the organi(ed and un organi(ed sector, the new revolutions and modern technologies evolutes the finished ceramic tiles business in "ndia into a speciali(ed approach the business is around more than F::: rs appro!G per year and it is growing by more than *HE of demand with the new approach to finished applications of interiors and e!teriors application.

The Leading Players are 2 6. 5. > /. 0-5'S-', S-)A'1, AS"A', ?3/-, '"T -, -/"?'T, S$6 and -/?@A a new revelation into this market. ompetition is very stiff as more organi(ed players were their into the eramic tiles business, and tapping the market share is very hard ball game but not impossible all together, +ecause it still lacking the professional approach and dynamisms with major of the organi(ed players, lately the leading players were getting more and more aggressing to get more and more business, as the market is growing like anything every one is there to achieve the @olume Aame. So itIs clearly a volume based business approach and opportunity is wide open for more new players into organi(ed business.

.rganised Com&ititors.
Anant /aj "ndustries 6td. Anti&ue Aranito $vt. 6td. Asian Aranito B"ndiaC 6td. ity Tiles 6td. entury Tiles 6td. 4eco 6ights eramics 6td. ?uro eramics 6td. Aokul eramics $vt. 6td. 5. > /. 0ohnsonB"ndiaC 6td. 0alaram eramics 6td. 2ajaria eramics 6td. 6oren(o @itrified Tiles $vt. 6td. )urudeshwar eramics 6td. -racle Aranito 6td. -rient eramics And "ndustries 6td. /adiant Jloor Tiles $vt. 6td. /A2 eramics "ndia $vt. 6td. /egent Aranito B"ndiaC6td. /estile eramics 6td. Sentini ermica $vt. 6td Silica eramica B$C 6td. @rundavan eramics 6td. @armora Aranito B$C 6td. Sogo eramics $vt. 6td. Somany eramics 6imited

Management e)&erience
)anagement ?!perience is very vital as well as fresh blood e!plored selling and convincing skills with modern management dynamisms, and speciali(ed solution oriented servicing, service elongated approach is the vital, The )odern verticals selection, with the support of marketing needs and business development procedures, flashing services will follow the developments.

S-)A'1 will be e&uiped with the team of professionals and the services of professionals in different departmentsK Sales Mar+eting "inance & ,ccounts Production /uality Control 0esearch & -e'elo&ment

1uman 0esourse Customer Care

All the 4epartments are ?&uiped with )ordern ommunicative tools > system in the company. The information is shared between different departments through "nformative medium networks . S-)A'1 Tiles > eramics have highly skilled and &ualified employees. S-)A'1 Tiles > eramics manufactures a wide range of Tiles with different designs and colors. S-)A'1 Tiles > eramics has a keen eye on future. $roper visionary planning to build another manufacturing plants to meet the future demand.
Structure "ndividual performer 5isL5er B+usiness 4evelopment ?!ecutiveC Senior +usiness 4evelopment ?!ecutive 5isL5er 4eputy )anager )anger Monal )anger Aeneral )anager @ice $resident )anaging 4irector L ?-

+lue > )aroon N $roposed )arron N /e&uired to +uild the +aseG.

Conce&ts23 +?4/--)S, 2" 5?'S, +AT5/--)S, 6-++1, .A66S, 4/A."'A,$30A,?OT?/"-/S

. jecti'es and Goals


To achieve a !E of mar+et share. $rovide the complete ultimate interiors and e!teriors surfacing solution. Satisfy the ultimate needs and re4irements of the market. Jre&uent developments and advancements to modern technologies Pro'ide elegance and esteem in customer service. .ill 4evelop ma!imum numbers of &rodust range. .ffer the est 5arranty in the industry. To 4evelop strong 0&- team to conceptualise no'el designs. "t creates ,:-;: new designs every month in line with customer preferences to strengthen the brand recall. The ompany will set to organise several meets 5ith its dealers and su 2dealers which provides a rich insight into evolving customer tastes and &references on a regional basis. ontinue its un-ending process of new products and enhance e!isting products. "n response to demonstrated needs of our market, ne5 &roducts or ser'ices being developed in the near future includes !, !, and (. Additional conceptsLplans for follow-on ne)t generation &roducts . Ma+ing solutions for the ne!t generation of productsLservices. AddG add2on ser'ices for future customer needs.

M,06(T ,*,L7SIS "tIs a business where market diversity is huge and customer aspirations change fre&uently, it is e!tremely essential to e'ol'e and sho5case contemporary products, reflecting the fast2changing Indian lifestyle. 2 Mar+et *eeds 23 )ore Aggressive Approach, Special Targetting, $rofessional Approach, ?ffectivity, +est .arrrenty, Technical Sounness with ommercialism e!pertise, $ropor Solution to needs -Mar+et Trends 83 )ordern Applications, 'ew olour $lays, AgeLAenderLSocio ulture.

2Mar+et Potential and Gro5th NP 5uge Arowth in /eal ?state and onstructions, with infrastructure growths. 2Mar+et Characteristics 23 Sales 4riven through networks and intermediaries. -)ar+et Segments 23 S.M,*7 Tiles & Ceramics has segmented the target market on the basis of the need of customers. The $ioneer ompany divided the market into low to high end market. +ut they are mostly focus on high end market segment. They produce different type of tiles with different price ranges. ?specially for high end market segment they produce high &uality products with high prices and for middle end market segment they produce products with relatively low prices and low &uality as compared to the high end market. So S-)A'1 Tiles > eramics produce different &uality products with

different prices for different market segments.depends upon usages,projects > "nstitutions->-4omestic.

Target Mar+et 'ow Tiles have become an essential part for the decoration of our residential and commercial buildings. So our target market is that people who can afford and who want to make their lives worth living by using these tiles and who focus on beauty as well as lu!ury and style and design. So company main target market is upper middle class and elite class because lower middle class and poor class customers can not buy tiles. Target ,rchitects Bwho often specify e!actly whatQs to be installed in new constructionC Interior -esigners Bfor when the remodel is simply changing materials not structures. %uilders & Contractors. Technician and #or+ers ! "or 9 tyre & : tyre areas$ suggest hiring an ,;- re&22 ,rchitect;-esigner re&. rep means our %uiness -e'elo&ment ()ecuti'e calls on the designerLarchLcontractor about a specific project and brings in samples as they relate to that project. Jind organi(ations that cater to these professionals, such as a contractorQs association, or realtorQs association. -ealars ; Stoc+ists The point is that mass media will not give you a good /-" for such a targeted niche audience. So you want to find a way to reach your target audience more directly. Target Sectors

S(CT.0S
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Intended Positioning3
The positioning which S-)A'1 Tiles > eramics want to produce in the mind of customers is that they will provide them high &uality and stylish products to improve their life style and make their life easy and beautiful.

Green Tiles. (cofrienly Tiles 1ygenic Life

= Ps3
Product:
S-)A'1 Tiles > eramics is an ideal medium for coverage of floors and walls in the interior as well as e!teriors in a practical cost effective and durable manner. "t is like impossible to list all the applications of S-)A'1 Tiles > eramics but to mention a few here are some areas of the applicationP !>$ 0esidential3 "t is used in boundary walls gate pillars, can porches, home lobbies, lounges drawing and dining, living, bed and bath rooms, kitchens and staircases. !9$ Commercial3 "t is used in offices, showrooms, shops, pla(as, shopping malls, hotels, restaurants, airports, railways and bus stations, hospitals and clinic, sport comple!es and swimming pools. !:$ Industrial3 "t is used in floor covering of all sorts of industrial units, ware houses, workshops, and depots. !=$ Pu lic Places3 "t is also used in pathways, footpaths, parking lots, and gas stations. /ualities of &roduct3 S-)A'1 Tiles > eramics are completely homogeni(ed which means that the color the te!ture and the veins run throughout the thickness of the body just like the natural stone. 3nlike what is available in the market in the name of , the colors, design and te!tures of ceramic are not superficial. So from the years of research and latest moderrn technology S-)A'1 Tiles > eramics is a gift for those people for those who want to upgrade their life style opt for todayIs most modern material to make their life more beautiful. *o Stain3 "t is easy to clean and offers complete chemical resistance due to e!tremely compact homogenous superior surface. Scratch 0esistance3 "ts solid and compact body protects tile from scratches. :? , sor&tion3 'o pores through out the tile thickness, e!tremely compact. This is even true for areas that have been subject to abrasion. Ma) 0ange Color Si@es3 "t offers a big list of different si(es and colors. Ma)imum Strength3 "t is pressed by hydraulic pressure with force into compact uniform tile. 4ried and fired at a temperature of *,9: bringing them into one solid and compact body. "ine (dges3 utting of these hard tiles is done by special diamond blades. That makes laying of tiles very easy and adds beauty to architecture.

Price3

S-)A'1 Tiles > eramics sets relatively high prices for their products as compare to the competitors. $rices are sets according to the good &uality of the product. The product with good &uality has high prices while the product with normal &uality has relatively low prices. "n local market their prices are relatively high than other competitors. Their high prices reflect their good &uality. The $ioneer ompany a complete range of product line and the prices vary between different product types.

Placement3
S-)A'1 Tiles > eramics .ill ?&uip with big distribution network in all over the country. The $ioneer ompany will divide the local market into different (ones, like ?ast (one, .est (one, 'orth, etc. ?ach (one has its own head office and is responsible for marketing Sales activities in that (one. S-)A'1 Tiles > eramics distribute the product through its dealers in different cities. These dealers work with S-)A'1 Tiles > eramics on agreement basis. ?ach dealer is given target sales. After achieving a target sales discounts are offered to these dealers. These dealers only sell S-)A'1 Tiles > eramics products. 5owever these dealers also sell the product to the small local retailers which sell multibrands under one roof. These retailers may have some cheaper brand as well as some imported brands. 'ow S-)A'1 Tiles > eramics will start to establish its own display centers in major cities like Aalaries. These display centers have not products to sell but just work as to show and provides the information about the product.

Promotion3
Advertising is done in leading onstruction maga(ines and interior design journals. Taking part in international e!hibitions is routine. S-)A'1 Tiles > eramics use different promotion tools to promote their product. 6ike Advertising, ?!hibitions and Seminars. ()hi itions3 S-)A'1 Tiles > eramics will also takes participation in different industrial e!hibitions all over the country. Their representatives give a presentation there and provide the information about the brand. Seminars3 S-)A'1 Tiles > eramics will also held some seminars for providing the information. "n these seminars business customers are invited. 6ike +uilders and contractors. "n these seminars the information about the brand is provided to the customers.

Communication Issues3
%rand Message Communication3 S-)A'1 Tiles > eramics uses different )edias to communicate its message. They use advertising for message communication. Their ads show their message by showing their beautiful and stylish tiles decorates the offices, residential places and giving them more modern and beautiful look. Their ads show their slogans Elegance / SOMANY Tiles & Ceramics for Styles! Their ads show that S-)A'1 Tiles > eramics have remarkable tendency to increase the beauty of architectures. S-)A'1 Tiles > eramics also use digital sign boards, big bill boards in selective areas to communicate their message. /ualities of Media3 S-)A'1 Tiles > eramics use different media for advertising. 6ike electronic media and print media. "n electronic media they use T@ channels for advertising. T@ channels are very famous media vehicles and message can be communicated to a large number of people at one time. "n printing media S-)A'1 Tiles > eramics use big +ill boards and digital sign boards which are relatively cheaper than the T@ channels. These print media are very effective way of advertising when the people are not in their homes. $eople can watch the message to the roads in different places and when they are on a journey. So now this print media has become a more effective and cheaper medium for communicating the message.

%rand (lements3
*ame3 AS-)A'1 Tiles > eramics% as the name shows S.M,*7. +y choosing that name they want to show that they are S-)A'1 in every thing, just like S-)A'1 in &uality, S-)A'1 in style, S-)A'1 in producing waste range of designs, S-)A'1 in producing vast range of colors. So by selecting the name S-)A'1 they want to create an association that they are S-)A'1 in every thing. %rand ,ssociations3 These are the desired associations which S-)A'1 Tiles > eramics want to create in the mind of customers. B 1igh 4uality &roducts. B Com&lete range of &roducts offered !5all, floor tiles$. B 0elia le Product. B -ura le Product. B *umerous range of colors. B ()tensi'e range of designs. B Stylish Product. T1( %0,*-3 )ore focus on packaging and product merchandising. "t may introduce a specific dedicated team to look after the overall brand e&uity. They will ensure that all showrooms and dealer display centres were in sync with the ?legance profile. Also they will look after the e)ternal &ac+ing material which creates an eye on look-and-feel, resulting in a holistic branding approach. )ore focus on /esearch and design-development activities to achieve the cost and product design leadership. Logo3 The company logo represents the first capital letter of S-)A'1 #3% in stylish way. "ts purpose is that when any person watches this logo automatically his mind captures the image of S-)A'1 Tiles > eramics and this logo also communicates the company brand name. Slogan3 Their slogan #(legance Tiles "or StylesCD "t communicates the message that S-)A'1 Tiles > eramics are more stylish tiles meets with the modern needs and increase the beauty of your architectures. The word #?legance% means most stylish most beautiful and the words #Tiles for styles% means once you use S-)A'1 Tile it will remain forever. So those slogans communicate the message that S-)A'1 Tiles > eramics will provide your architectures a beautiful look forever. "t will upgrade your life style and will make your life easy and beautiful. This slogan also communicates the message that S-)A'1 Tiles > eramics have most beautiful styles and more durability. "t will provide your architecture a beautiful look forever.

Mar+eting strategy
.'erall strategy 3 Should adopt the widest distribution network model to deliver products to the end user in &uickest and most effective way. "t would also accelerate the sales. "t may include company owned showrooms, franchises, multi-product dealers and sub-dealers.

4istribution network should be clearly segregated towards specific product segments. )ay introduce three dimensional catalogue visual e!periences to its customers and also give customer a chance to design product in their own way of choice Bcustomi(ed design specificationC. Setting up e!clusive showrooms for special products instead of keeping with with the regular range. As e!ample, the upcoming product -/@"T-a product in high gla(e tiles segment should have an e!clusive place to showcase. "t would add to the e!clusive ambience of the product. )ore introduction of matching wall and floor tiles.To grow its institutional business, the company should organi(e more interactions with architects, developers and government agencies at its dealer outlets. This would serve a dual purposeP it would enable the company to ac&uire an insight into evolving preferences of some of the most prominent and trend- influencing architectsK on the other hand, it helped the company cater to their evolving preferences.

The ompanyIs marketing strategy is aligned with different &roduct classes , Product <sages, Produsts Vertcals , Product Segments, Product Targets, that it itself manufactures and trades. The Somay Tiles > Aranites has clearly segregated its distribution network, catering to specific product segments.

Channel *et5or+ 3 .ill put all emphasis on proper infrastructure planning so that it will move out with advancing concern and will reate the 4ealer 4isributor Stockist 'etworkGThe ompany will deploy the widest distribution networks in the "ndian ceramic tile industry, facilitating a &an2India &resenceK its distribution network comprises owned showrooms, dedicated franchisees, multi-product dealers and subdealers. +asic $rime 4eployments is to lay down the franchise model for the rapid scaling of S-)A'1 .orld showrooms in metros, Tier2I and Tier2II cities.

Channel 0e'i'ing Parameters 3 R +rand availability in the store R Jre&uency of the inventory R Timely delivery R SpecialLurgent supply R Supply time R /epresentative relation R R ashLdealerIs discount ustomerIs prere&uisite specification needs, if any R Jre&uency of taking dealerIs advice R @ariety in &uality and si(e of the tiles R 4ealerIs ranking P<S1 S(LLI*G.

'ew dealer appointment S timeL scheduleT Annual sales estimates for the new dealers )onthly stockholding for the )onthly stockholding for the /egular trade discount Special rebate bonus for lifting more stock --say ,:E over last year. C.*TI*<( #IT1 T1(S( <S("<L P0.G0,MS -rgani(e a dealers and architect function B4inner programC U $rovide tile stands to the dealers U $rovide Shop signs U 6eaflets U Aiveaways B$enC U $articipate in industrial event -train -ur sales representatives. -regular sales -organi(e -organi(e commission. achieve the targets S ,:E over the last yearT -plus special bonus if they new dealers in their dealership. current dealers in their dealership. Annual sales estimates for the current dealers

the best sales representative competition. the outstanding dealer competition by regions in our country.

-organi(e

the best dealer competition nationally.

P<LL

S(LLI*G. -'T/A T-/S

4irect marketing promotions to the A/ 5"T? TS. 4irect marketing promotions to the +3"64?/SL .ith special price based on volume.

+3T T5? 4?6"@?/1 S5-364 +? T5/-3A5 T5? 4?A6?/S. Sales drive by the sales reps. on major buildersLcontractorsLrenovators. Jor small builders L renovators develop a loyalty program for *, months if they buy from the same dealer all their re&uirements. Advertise in the local papersL maga(ines with a discount voucher offer with which individual flat ownersL home owners can buy our products from the local dealers, using the voucher. 6oad our website with a discount voucher offer

with which individual flat ownersL home owners can buy our products from the local dealers, by downloading L using the voucher. "f our dealers have their delivery vehicles, we should help

to paint their vehicles with

your productsL logos.

Conclusion3
The prospect and the future of ceramic tiles lies not only in )ertos and *Tyr itites, +ut also will get into ,tyr cities, -ur Strategies will be $ush and pull both as we will opt the Aggressive marketing strategy of approach for selling will focus on creating channel infrastructure then keep on developing them and get the number grow very subtantiailly to get ma!imum channel to e&uip with our brand flow and simultaneously will make the products pull through our advance encompassed marketing strategies to get a brand pull by making the se&uencing through the key intermediaries into projets and institutions to achieve the giant and gigantic @olume based sales spread across the country. " would like to produce some of the evidences aligning with this and with this " would like to conclude my project.

ATTA 5?)?'TSP ?!cel sheet attachement N shows state wise , area wise manpower allocation and volume achievements. $owerpoint presentation of the supports.

P.ishing to mentor the ceramic Tile and Sanitaries world and the market andtest with my strategies = 78*8HD*::H::H

= 78*8999:*9;,<

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