marketing plan multi_lock

2011

Islamic University of Gaza Faculty of Commerce Advanced Marketing

[ALHELO COMPANY MARKETING PLAN] Prepared by: Salah A. Skaik

Alhelo Company Marketing Plan I

Contents 1.0 Executive Summary ................................................................................................. 2

2.0 Situation Analysis .................................................................................................... 3

2.1 Market Summary ................................................................................................. 3

2.1.1 Market Demographics ................................................................................... 3

2.1.2 Market Needs ................................................................................................ 4

2.1.3 Market Trends ............................................................................................... 4

2.1.4 Market Growth .............................................................................................. 5

2.2 SWOT Analysis ................................................................................................... 5

2.2.1 Strengths ....................................................................................................... 5

2.2.2 Weaknesses ................................................................................................... 5

2.2.3 Opportunities................................................................................................. 5

2.2.4 Threats........................................................................................................... 5

2.3 Competition.......................................................................................................... 5

2.4 Product Offering .................................................................................................. 5

2.5 Keys to Success.................................................................................................... 6

2.6 Critical Issues ....................................................................................................... 6

3.0 Marketing Strategy: ................................................................................................. 7

3.1 Mission:................................................................................................................ 7

3.2 Marketing & Financial Objectives: ...................................................................... 7

3.3 Target Markets: .................................................................................................... 8

3.4 Positioning: .......................................................................................................... 8

3.5 Strategies: ............................................................................................................. 8

3.6 Marketing Mix: .................................................................................................... 9

3.7 Marketing Research: ............................................................................................ 9

4. Finance ..................................................................................................................... 10

5. Controls .................................................................................................................... 10

Alhelo Company Marketing Plan

Alhelo Company Marketing Plan | 2

1.0 Executive Summary

Alhelo company, established in 1985, is specialized in armored doors. It started its

business marketing Mul-T-Lock Armored doors in Gaza Strip. Through years of hard

work, good reputation, and good after sale services it succeeded in positioning its

brand and created a big number of loyal profitable customers. In the past few years a

lot of obstacles on importing have been raised and new competitors entered the

market. Alhelo company started to assembling doors on Gaza Strip to minimize coast

and fulfill customers demands which gave Alhelo company a good advantage among

its competitors. In addition, Alhelo company Imported an economical type of doors to

expand its alternatives and options.

Recently, Alhelo company started a study about the opportunities of exporting its

product and entering a new market. There is a good chance of recovery and growing

for the local market. Alhelo company preparing itself to benefit of the expected

opportunities. Through providing alternatives and keeping connected directly to

customers Alhelo company hopes to keep maximizing its market share.



2.0 Situation Analysis

Alhelo company is working in armored doors since 1985. It sells Mul-T-Lock

armored doors mainly, and it has positioned the brand very well. Alhelo company

deals with governmental construction projects, private sector and institutions, and a

big number of individuals. The company has established powerful relation with its

customers especially through its distinctive after-sale services. The company faced a

lot of obstacles. One of the biggest obstacles is Gaza siege.

2.1 Market Summary

Alhelo company possesses good information about the market and knows great deal

about the common attributes of the most prized customer. Such information will be

leveraged to better understand who is served, what their specific needs are, and how

Alhelo company can better communicate with them.

Alhelo company looks to the doors market as three products types: doors made of

wood, doors made of steel, and armored doors. Alhelo company also segments the

customers into three main segments: government sector, private companies and

institutions, and individuals. The following figure summarize Alhelo company view

of the doors market.

Wooden

Doors

Steel

Doors

Armored

Doors

Government

Sector

Private

Companies

Individuals

Target Markets

Security

Constructions

Engineering Consultations

2.1.1 Market Demographics

The profile for the typical Alhelo company customer consists of the following

geographic, demographic, and behavior factors:

Geographics

Alhelo company targets Gaza Strip geographic area. The current situation in Gaza

Strip limits Alhelo company ability to target other geographic areas.

The total targeted population is about 150,000 consumers.



Demographics

About 95% of customers are males.

Ages 25-65, with about 80% clustering around ages25-50. The engineering

consultation customers tends to be the most profitable customers. The individuals

covers the widest range nowadays.

The customers ages 25-50 are employees have new houses in construction phase

and engineers engaged in decision making working for government and private

sectors.

Most of decision makers in government and private sectors are of ages 25-45.

most of the engineering consultation customers tend to be ages 50-60.

Customers of ages 60-65 are retired employees and have good savings.

Behavior Factors

Government sector prefers armored doors with high quality and low coasts.

Private companies & institutions tend to be more carious about looking in addition

to quality.

Individuals who live in apartments tend to be more carious to security.

Retired people often spend their savings on building or renewing houses.

2.1.2 Market Needs

Alhelo company is providing the armored doors customers with different alternatives

in addition to a wide range of accessories to match their needs and different tastes.

The company seeks to fulfill the following benefits that are important to its

customers:

Security. The customers choosing armored doors to get security that can rely on

because of the unstable situation in Gaza Strip.

Quality. The customers work hard for their money and looking to get more quality

for more money they spend.

Good external look. Customers wants their armored doors to have accepted

looking compared to wooden doors.

After sale services. When customers pay more they expect to have more after sale

services compared to after sale services for wooden and steel doors.

2.1.3 Market Trends

Currently, markets in general in Gaza Strip can be considered relatively poor. Gaza

siege affected badly a lot of markets in Gaza Strip especially construction market and

its related markets. On the other hand, Gaza siege and the war on Gaza in 2008 have

crated large demands on construction and security markets in Gaza Strip.

Construction and related markets tend to be promising. Housing Projects, NGO

developments projects especially in education sector, and Gaza reconstruction

projects in addition to orientations to reduce the constraints on export are expected to

provide a lot of opportunities in construction and related markets.

Alhelo company preparing itself to benefit of the expected opportunities. Through

providing alternatives and keeping connected directly to customers Alhelo company

hopes to keep maximizing its market share.



2.1.4 Market Growth

It is expected to have a remarkable growth in market in the next two years although,

because of continuation of Gaza siege and existing constraints on importing and

exporting the market has had a limited growth throughout the last two years. More

and more construction projects started and expected to start in next years.

2.2 SWOT Analysis

The following SWOT analysis captures the key strengths and weaknesses within the

company and describes the opportunities and threats facing Alhelo.

2.2.1 Strengths

Improving industry experience.

Marketing experience.

Availability of alternatives and options.

Well positioned brand.

2.2.2 Weaknesses

The difficulty keeping experienced technicians and workers.

Lack of funding marketing campaigns.

2.2.3 Opportunities

Increasing construction projects.

Housing projects.

Ability of entering new markets.

2.2.4 Threats

Continuation of siege.

Political unrest.

2.3 Competition

Alhelo company has a well positioned brand and acquires most of market. Although

there are one company or tow selling armored doors, there is no competition to

mention. Alhelo company trying to maximize its market on account of wooden and

steel doors. Alhelo company providing alternatives, accessories, and different sizes of

armored doors with external looking comparable to wooden doors and low price

armored doors to compete steel doors.

2.4 Product Offering

Alhelo company now offers several products:

The first product that has been assembled in Israel is Mul-T-Lock. Which is the

main product with a well known brand. These doors is relatively expensive but

can have a lot of accessories and is guaranteed for five years.

The second product is ArmoredDoor. These doors are assembled in Gaza Strip

with Mul-T-Lock locks. These doors have medium price, can be made in different

sizes, can have a lot of accessories, and is guaranteed for ten years.



The third product, Nemenr, is representing the economical alternative with a

relatively low price.

2.5 Keys to Success

The keys to success are providing and producing products that meet market demand.

In addition, Alhelo company must ensure total customer satisfaction. If these keys to

success are achieved, it will become a profitable, sustainable company.

2.6 Critical Issues

In a poor market. The critical issues are for Alhelo company to:

Keep brand well position.

Improving production capabilities.

Keep in close contact with profitable customers.

Increasing market share.



3.0 Marketing Strategy:

Alhelo company is moving toward internal marketing control by establishing

programs such as Gaza war program 2008. Which in this program the company's sales

persons visited all the partially damaged houses or buildings, and that their Mul-T-

Lock doors had some damages, the company totally afforded all the fixing and

maintenance costs, as a kind of customers support and a positive step toward the

gazans people generally and the company's customers specially.

Mul-T-Lock target market presents great opportunities for the company growth, as its

niche is not at all saturated at this point. It will dominate the superior secured doors

market by stressing the quality and materials of its product lines, keeping up with and

integrating technological advances in the security and safety environment, and by

increasing its market research and customer service in order to constantly satisfy the

company markets' needs.

The individuals and construction companies (Target Market) will greatly benefit from

the Alhelo company quality products in terms of, safety and security, varieties styles,

well-design and modernity, and long period guarantee.

The key to reach this market is to make them (i.e. individuals and construction

companies) aware that the Mul-T-Lock products are available. The company doesn't

need to convince them of anything but the assurance of quality in manufacturing and

design.

3.1 Mission:

Alhelo company helps create secured and safety front doors, with well-designed

shapes. The company incorporates new technology into the classic model, in which

customers can be more satisfied about the product strength and design.

The Alhelo company is sensitive to the look and feel of good wood and steel, as well

as to high-powered security and long lasting doors.

The Alhelo company always provides the best possible value to its customers who

care about quality, and the company wants every dollar spent with it to be well spent.

The Alhelo company seeks fair and responsible profit, enough to keep the company

financially healthy for the long term and to fairly compensate owners for their money

and risk.

3.2 Marketing & Financial Objectives:

Enforcing the good spirit and the good reputation by having and lasting the good

relations with the public.

By yearly basis, the Alhelo company looks forward to a significant increase in

sales.

Developing new product that is locally manufactured, with high quality, well-

design, much longer guarantee period, and with affordable price.

The Alhelo company is looking for means and methods to decrease the

manufacturing costs, by searching for substitutes of raw materials, but with the

same quality, as well as lowering the transportation expenses.

By achieving the above goals, the Alhelo company would be able to lowering the

price of its products, which means penetrating to a new market segment, and

therefore increasing the company's market share.



Using the competitors as promotional tools, which effectively can reduce the

promotion budgeting.

3.3 Target Markets:

The Mul-T-Lock Company's segment definition is of itself strategic. The company is

not intending to satisfy all users of front doors, but, rather, only those who are most

demanding.

The Alhelo company is definitely out to address the needs of the high-end buyer, who

is willing to pay more for quality and more security.

In the company's particular market, it also seeks the buyer who appreciates three

attributes: the high secured, high quality, and the excellence design of door.

Individuals: the company's market research indicates a significant increase would

be in the potential customers who are living in areas that could be relatively

remote, or that might be exposed to Israeli attack or invasion. The target customer

is ranging from middle to high income customer.

Contractors: it's considered one of the strongest markets among of the other types

of businesses. With massive purchasing orders. And this market is considered as

direct market.

Consultants: this type of markets is a very important target, since they give the

advice for the investors, donors, institutes, I\NGOs to which the best that might fit

their needs.

3.4 Positioning:

The Mul-T-Lock has a competitive edge, which is its dominance of high-secured and

traditional high quality doors. Although there are many doors manufacturers, few

have brought the two crafts together as the Alhelo company has.

The Alhelo company focuses on a special kind of customer, the person who wants

very high quality and high secured door, as well as the excellence in design and style.

An important competitive edge is the company's assembly strategy, which is based on

interlocking wood and steel pieces of such high quality that assembly is not only

pleasure for the customers, it's actually a feature that enhances the sense of quality.

3.5 Strategies:

The main strategy at the Alhelo company is to position itself at the top of the quality

scale, featuring its combination of superb security and safety, for the buyer who wants

the best quality regardless of price.

The message that the Alhelo company will seek to communicate is that it offers the

best-designed, high security, high quality, long term guarantee, and after sale high

quality service.

This message will be communicated through a variety of methods:

The first will be the company's website, which will provide a rich source of

product information and offer consumers the opportunity to purchase.

The second marketing method will be advertisements placed in numerous industry

magazines. (E.g. aldaleel magazine)

As well as using some brochures to give a clear image about the company, and its

products, in addition to its history and experience.



3.6 Marketing Mix:

Alhelo Company's marketing mix consists of the following approaches to pricing,

distribution, advertising and promotion, and customer service.

Pricing: The pricing scheme will be product cost plus variable overhead costs

associated with each sale.

Distribution: All products are available from the Alhelo Company's store.

Advertising and Promotion: The most effective activities will be the direct

marketing tools, by the sales persons make field visits to potential customers and

give them detailed presentation about the company and its products In a

professional way. As well as the industry magazines and website.

Customer service: Customer service will be of high level. This takes into account

the fact that all the customers are the company's partners, so there is a natural

incentive to treat them properly.

3.7 Marketing Research:

Based on the recent developments, concerning the building ability and construction

materials, there would be a potential increase in the buying behavior to the Mul-T-

Lock doors, especially after the Gaza war 2008, and how this door had play a great

role in protecting and preventing any kind of attacking the flat or house during the

critical times, while the inhabitants left their homes.



4. Finance

Alhelo Company estimates the break-even-point to be 68 doors per month.

The monthly estimated sales of the company is approximately 200-240 doors.

Celebrating the 25th anniversary, Alhelo Company will start a public campaign.

The public campaign mainly aims at strengthening the relationship with profitable

customers and public through:

Sponsoring public events

Sponsoring sport clubs and events

Participating in national exhibitions

Implementing charitable works

5. Controls

The purpose of Alhelo's marketing plan is to serve as a guide for the organization.

The following areas will be mentioned to measure performance:

Revenue : monthly and annual

Expenses: monthly and annual

Customer satisfaction

Manufacturing procedures improvement