1. (MASTER TILES AND CERAMICS LTD.) Undertaken By M. AZAM NISARSHEHZADA AWAIS AMINFAISAL NAEEM BUTT Presented To:EXPORT MARKETING 1

2. SIR KHURRAM AZIZ FANI GIFT University, Gujranwala EXPORT MARKETING FOR MASTER TILES AND CERAMICS LTD. BY Awais SheikhRoll # 02FBC003 M. Azam Nisar Roll # 02FBC005 Faisal Naeem Butt Roll # 02FBC017This project is submitted to the Faculty of Business & Commerce, GIFT UNIVERSITY, Gujranwala Pakistan. In partial fulfillment of the requirements for the degree ofBachelors of Commerce (IT)EXPORT MARKETING2 3. DEDICATION Dedicated to Faculty & Students GIFT UNIVERSITY,GujranwalaEXPORT MARKETING3 4. ACKNOWLEDGEMENTFirst of all we are highly thankful to ALLAH Almighty who helpful usto fulfill the assigned project. Secondly, we dedicate this project to ourparents, who guide us on every step during our student career. They set up tomeet every challenge in every walk of life. We are owed to our worthy andrespectful teachers who taught so luminously and bestowed creative effort,mental enhancement that enables us to fulfill this task. Especially, we areobliged to Sir KHURRAM AZIZ FANI who encouraged and gave us mentalrobustness to complete this project.Lastly, we are thankful to the management of MASTER GROUP OFINDUSTRIES who provide us all the necessary information and helped us forthe completion of this project.AWAIS SHEIKH M. AZAM NISARFAISAL NAEEMEXPORT MARKETING4 5. PREFACENow a days business is the only legal way to earn money. But business is notan easy job. To maintain a business is a very difficult job, especially in thiscompetitive world when you find very tough competition on each step. Now adays manufacturing of a quality product is an easy job but to sell/ market it isa 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 toanalyses different environment of you target market, then it enables you tomarket you product over there.Still many people may feel like they do notunderstand how to market their product. To have a better understanding ofBusiness marketing, it would be better to look at the basic concepts andimportant steps of Marketing.The documentation of our project includes different information about a largescale business. That how it analyze the all environments of marketing for theexport marketing of Master Granite Tiles in United Kingdom Market. Allnecessary steps are discussed briefly in this project.EXPORT MARKETING5 6. TABLE OF CONTENTS TopicsPage 1COMPANY PROFILE8 2 MARKETING ENVIRONMENT 10 3PEST ANALYSIS 12 I. POLITICAL FACTORS 12II. ENVIRONMENTAL FACTORS 13 III. SOCIO-CULTURAL FACTORS 14 IV.TECHNOLIGICAL FACTORS 184 SWOT Analysis19 5 PORTERS 5 FORCES MODEL 206 MARKETING STRATEGY227Ansoffs Matrix 228PORTERS VALUE CHAIN MODEL239MARKETING PLANNING 2510MARKET SEGMENTATION 2611Target Marketing3012MARKET POSITIONING31EXPORT MARKETING 6 7. 13Marketing Tactics3414Marketing Mix 34I. Price34 II. product35III. place, 35IV. promotion.36 15Business Risk Management 37 16 Research and development37 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 Equity42 23 Conclusion43OTHER DOCUMENTS BOOKLET OF MASTER GRANITE(DESCRIPTION OF BRIEF HISTORY, MISSON STATEMENT, OBJECTIVES, PRODUCTS, DESIGNS, PRICES, TECHNICALDATA etc. )EXPORT MARKETING 7 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 INDUSTRIESStarting Date of Business:EXPORT MARKETING 8 9. Master Sanitary Fittings was come into being in 1982, Which is the very first business ofthe Mster Group. In 1995 it started its tile manufacturing business and in October 2003 itintroduced 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 OFFICEG.T. Road Gujranwala, PakistanPRODUCTION SITE( for Granite Tiles)G.T. Road Kamoke, PakistanPRODUCTION CAPACITY: 25000 Sq. MeterContact Information:Ph#092-431-111-300-400PABX 092-431-272770 to 272779Fax# 0431-272127,272721E-Mail info@mastertiles.comWeb Addresshttp://www.mastertiles.comBusiness advisors:Legal advisor FirmAhmad rauf Associates Chartered Accountant FirmIllyas Saleem Company Lahore Advertising Agency Creative Consultsant MARKETING ENVIRONMENTEXPORT MARKETING9 10. It is very important that our organization considers its environment before beginning themarketing/ export marketing process. In fact, environmental analysis should be continuousand feed all aspects of planning. The organizations marketing environment is made upfrom:1. The internal environment e.g. staff (or internal customers), office technology, wagesand finance, etc.2. The micro-environment e.g. our external customers, agents and distributors, suppliers,our competitors, etc. Micro Environment LevelEXPORT MARKETING 10 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 companys macro environmentEXPORT MARKETING 11 12. ANALYSISTARGET MARKETUNITED KINGDOM1. Political FactorsThe political arena has a huge influence upon the regulation of businesses, and thespending power of customers and other businesses. What our business must considerissues are such as:Political environment of the target market Political environment of U.K is very much stable, as there is no chance of militaryinvasion. And as their Government type is Constitutional Monarchy. It will be realy aplus point for our company to export over there.Government policys influence on lawsGovt. Policy may influence on laws regarding to tile industry because of much demandfor tiles. As we are exporting our granite tiles, so their laws regarding to flooring industrymay influence, but due to huge market demand of granite tiles the Govt. of U.K isproviding some relief to Tile exporters for U.K.Governments position on marketing ethicsBecause of Governments control on market moral values. Government never Discouragethe exports.Governments policy on the economyAs the economy of U.K is stable. So Government policy on the economy is to take ittoward prosperity.EXPORT MARKETING12 13. Governments view on culture and religionIf we talk about U.K Govt. view on our culture and religion, then it came to know thatthey really take care of every religion specially Islam because U.K second largest religionis Islam having more than 1.5 million people.Government involvement in trading agreements such as EU, NAFTA, ASEAN, orothers.Our target markets government involved in these trading agreement, which mayinfluence positively for our exports, Because of UK govt.s international organizationparticipation.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, ZC2. Economic FactorsMarketers 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 ratesAs it is very low in UK. Which may be 0.02%. we assume interest rate is different fordifferent business ethics.Long-term prospects for the economy Gross Domestic Product (GDP) per capita,and so onGDP:Purchasing power parity-- $1.528trillion(2002 est.)GDP-real growth rate:UK economyincreased by 0.6% in Q1 2004.GDP- per capita: purchasing power parity $25,500 (2002 est.)EXPORT MARKETING 13 14. The level of inflation Employment level per capitaBecause annual inflation rate is decreasing. So it is a good indicator to do exports of tilesover there. CPI inflation the Governments targetmeasure fell to 1.1% in March, from1.3% in the previous month. The largestdownward influence on the inflation ratecame from transport costs. Petrol anddiesel prices increased by less than lastyear, when there was uncertainty aboutfuture oil supplies.3. Socio-cultural FactorsThe social and cultural influences on business vary from country to country. It is veryimportant that such factors are considered. For U.K market these factors include:Attitudes to foreign products and servicesU.K markets as well as customers always welcome foreign Quality Products. Becausethey just want best.Language impact upon the diffusion of products onto marketsYes, thats why we used English language on manual of our tile industry as well as ourpackaging of the product.Roles of men and women within societyThey consider men and women not two different entities, their society give men & womenequal place.dominant religion and different ethnic backgroundsEXPORT MARKETING 14 15. Anglican and RomanCatholic is dominantreligion having 40million peoplesinvolvement withChristianity. 2nd largestReligion is of IslamHaving 1.5 millionpeople. This indicatornot only describe thereligion but also thedifferent ethnicbackgrounds of peopleliving in U.K.time do consumers have for leisureAs it is the best way to market our product on internet, television, radio as there are 228television 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 showsthat no doubt oldgeneration waswealthy but withthe passage of timenew generation isalso wealthy morethan oldgeneration.Population growth rate and Age distributionEXPORT MARKETING15 16. There were 596,122 live birthsin England and Wales in 2002- an increase of 0.25 per centon 2001, when there were594,634. Age RangeTotal MalesFemales 0-4348625317856881700565 5-9373804219147271823315 10 - 14388055719876061892951 15 - 19366378218705081793274 20 - 24354598417652571780727 25 - 29386701518954691971546 30 - 34449353221997672293765 35 - 39462577722776782348099 40 - 44415161320565452095068 45 - 49373598618513911884595 50 - 54404057620031582037418 55 - 59333900416513961687608 60 - 64288007414096841470390 65 - 69259693912413821355557 70 - 74233931910591561280163 75 - 791967088 8177381149350 80 - 841313592 482707 830885 85 - 89 752035 226520 525515 90 and over 37202683492288534 Totals58789194 28579869 30209325EXPORT MARKETING 16 17. Age Distribution pie chartDo 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 1990and 2003, as we know the population have its strong opinions.Several gases occur naturally in the atmosphere which keep the Earth at a temperaturesuitable for life by trapping energy from the Sun the greenhouse effect. Emissionsfrom human activities are increasing the concentrations of several of these gases, causingglobal warming and climate change.Health ConsciousnessCensus 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 theyare very much health conscious.Entrepreneurial spiritData for the three monthsending February 2003showed that the numberof people usually workingmore than 45 hours perweek continued todecline.EXPORT MARKETING17 18. 4. Technological FactorsTechnology is vital for competitive advantage, and is a major driver of globalization. Weconsidered the following points:Does technology allow for products and services to be made more cheaply and to abetter 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 itinstalled worlds most recent advance technology and using it to meet not only its qualitystandards but to exceed them. So we are getting an edge on our competitor present overthere. If we talk about price then as we know that the raw material is the main thing whichshould be available for its processing, we are getting an edge that with the Grace of Allahwe are having the worlds best Soil resources on very cheap prices.Technologies offer customers and businesses more innovative products and servicessuch as Internet banking, new generation mobile telephones, etc.Their technology supports to consumers and business for more innovative product andservices. 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 customersis increasing. SWOT AnalysisEXPORT MARKETING 18 19. Internal StrengthsWeaknesses Worlds most advancedmanaged by foreign engineerstechnology is being used.*as there is Unavailability of Work Delivery Schemeskilled workman force High Quality **We still got 60 % of ProductionCapacity. Wide Range of products** Service External OpportunitiesThreats Expansion into the World MarketSonex company is coming to Retail Partnerships Granite Industry Internet shopping# Overseas groups entering themarket (Chinas Dumping ) Further exploiting the Tile sector Manufacturers are still seeking Make own chain of regionalto legally slow down theStorespenetration of own brands.* Worlds 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 worlds best technology, but there is also one more thing from which our industryis getting full advantages, it is the raw material availability in our country. As Allah give us a vast resourcesof Soil, clay, chalk. Pakistani Soil is best due to its quality. Thats why we are giving our customers worldslargest design range(250 designs) in Granite Tiles.# Although an elaborate internet shopping system is in place Master lags behind in this market share inonline shopping (3%). Master incorporated its three existing Internet stations Masterdeliver,Master@work and Master Direct into an upgraded www.mastertiles.com portal in 2004. PORTERS 5 FORCES MODELEXPORT MARKETING19 20. Porters Five forces analysis helps us to contrast a competitive environment. Five forceslooks at five key areas namely the threat of entry, the bargaining power of buyers, thebargaining 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 wewill try to capture the whole market by giving more high Quality products on lessprices, which may discourage any other industry to come into market. But rightnow there is no need to make any change in our prices. Because when weconducted a research, we find that Pakistan flooring and facing was being done ata pace of 450,000 square meters every day. Out of which we are just covering thedemand of 120,000 square meter.As WTO is being imposed in 2005. so we should be ready to compete foreignentry, specially China, who is still dumping in our market, after theimplementation of WTO it will make him easy to sell its product on more lessprices. We have to find other markets, where the demand for our product is veryhigh. We also have to make ease access to distribution channels. We also have toutilize our full production capacity, which decrease our fixed costs, so we can sellour product in market on less prices. 2. The bargaining power of buyersEXPORT MARKETING20 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 dont 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 Ansoffs MatrixEXPORT MARKETING21 22. The Ansoff Matrix; Growth Vector ComponentsProducts Existing New Market Penetration Product DevelopmentImprove service (By giving Expand designs schemesExisting 50 years warrenty) Introduce new product (Leand quality Porcellane (Platinum))RepositioningMarkets Market Development DiversificationInternationalising & Master Tiles is manu- Globalization facturing a new tile forNewExpand abroad exports, which is harder in strength but can be mold/Expand north-west of UK pattern easily, and canOnline shopping easily cut by cutter.PORTERS VALUE CHAIN MODELEXPORT MARKETING22 23. Primary ActivitiesInbound LogisticsHere Raw materials of Granite Tile (Soil, chalk, clay) are received from companyssuppliers ( from Mianwali and Mirpur Khas). They are stored at stores until they areneeded on the production. Goods are moved around the organization. We have our owntrucks which are used in raw material movement from one place to another.OperationsGoods are manufactured at Master Tiles & Ceramics G.T road Kamoke. Each and everyfunction from its production to its storing in ware houses and loading is performedthrough machines. We have used most advanced Robotics Technology. And using asoftware to manipulate the whole industry.Outbound LogisticsThe goods are now finished, and they need to be sent along the supply chain to retailers orthe final consumer.Marketing and SalesIn true customer orientated fashion, at this stage our organization prepares the offering tomeet the needs of targeted customers. This area focuses strongly upon marketingcommunications and the promotions mix.ServiceEXPORT MARKETING23 24. This includes all areas of service such as fixing/installation, after-sales service, complaintshandling, training and so on. We are providing fixing assistance and a 50 year warranty toour worthy customers.Support ActivitiesProcurementThis function is responsible for all purchasing of goods, services and materials. The aim isto secure the lowest possible price for purchases of the highest possible quality. They willbe responsible for outsourcing (components or operations that would normally be done atorganizations)Technology DevelopmentTechnology is an important source of competitive advantage. Ourcompany install the worlds most advanced plant of granite tiles,which is only working in Pakistan at Master Tiles & Ceramics. Itreduced the cost of labors. We are also offering our products oninternet through E-Marketing. For this purpose we aremaintaining a Website http://www.mastertiles.com . we are alsoaoffering consumer rights protection policy (CRPP)which dealswith allHuman Resource Management (HRM)Employees are an expensive and vital resource. Our organisation manage recruitment andselection, training and development, and rewards and remuneration. our mission andobjectives 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 InfrastructureOur firms chief Executive is Sheikh Mahmoood Iqbal. And there are 7 full-timeDirectors. 1 General Manager, and 1 Assistant Genral Manager, and in management thereare more than 3 Chartered Accountants. In our firm there are 1000 employeesEXPORT MARKETING 24