GREEN BRICK MANUFACTURERS- MARKETING PLAN

December 10, 2011

Contents
1. 2. 3. I. II. III. IV. 4. 5. 6. 7. 8. 9. I. II. III. IV. EXECUTIVE SUMMARY .......................................................................................................................... 1 BUSINESS OVERVIEW ............................................................................................................................ 2 SITUATION ANALYSIS ............................................................................................................................ 3 CUSTOMERS .................................................................................................................................. 3 COMPETITIVE ANALYSIS ................................................................................................................ 4 SWOT Analysis............................................................................................................................... 5 Competitive Forces ....................................................................................................................... 7 COMPANY ..................................................................................................................................... 9 Mission: ......................................................................................................................................... 9 Core Values: .................................................................................................................................. 9 CONTEXT ..................................................................................................................................... 10 MARKET INFORMATION (OPPORTUNITY AND ISSUES) ....................................................................... 11 OBJECTIVES ......................................................................................................................................... 12 MARKETING STRATEGY ....................................................................................................................... 12 TARGET MARKET ................................................................................................................................. 13 POSITIONING ....................................................................................................................................... 13 MARKETING MIX ................................................................................................................................. 13 PRODUCT..................................................................................................................................... 13 PRICING ....................................................................................................................................... 14 PLACEMENT (DISTRIBUTION) ...................................................................................................... 14 PROMOTION ............................................................................................................................... 14 ADVERTISEMENT ......................................................................................................................... 14 SALES PROMTION........................................................................................................................ 15 PUBLIC AWARENESS AND PUBLICITY .......................................................................................... 15 EVENTS ........................................................................................................................................ 16 WEBSITE ...................................................................................................................................... 16 KUBS | Marketing Management

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WORD OF MOUTH MARKETING.................................................................................................. 16 PERSONAL SELLING ..................................................................................................................... 16

10. OPERATIONS ....................................................................................................................................... 17 I. II. III. LOCATION OF OUR FACILITY ....................................................................................................... 17 ADVANTAGES .............................................................................................................................. 17 OUTSOURCING ............................................................................................................................ 17 PROCESS ...................................................................................................................................... 18

11. REVIEW AND CONTROL ....................................................................................................................... 19 12. MARKET ORGANIZATION .................................................................................................................... 20 13. ACTION PLAN ...................................................................................................................................... 20 14. BUDGET ............................................................................................................................................... 21 15. CONTINGENCY PLAN ........................................................................................................................... 22 16. SUPPORTING DOCUMENTATION 17. FINANCIAL SEGMENT ............................................................................................................................. I I. II. PROPOSAL ...................................................................................................................................... I FINANCING PLAN ........................................................................................................................... I

18. FINANCIAL FORECAST ........................................................................................................................... II I. II. INCOME STATEMENT .................................................................................................................... II BALANCE SHEET ........................................................................................................................... III

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GREEN BRICK MANUFACTURERS- MARKETING PLAN

December 10, 2011

1.

EXECUTIVE SUMMARY

Green Brick Manufacturers is a hypothetical startup with a capital of Rs 7,300,000. The business produces bricks with a slightly different composition but makes a bigger impact on cost of manufacturing and utilizing industrial waste. These bricks use the usual cement, sand and water mixture with the compliment of incinerated (burnt) industrial waste, which reduces the usage of cement by more than 25% but still making these bricks more durable. This means it provides three major benefits, reduction of cost by as much as Rs 3 per brick, more durability and utilization of industrial waste for which there is no viable solution in Karachi. The idea of business is to gain the advantage of cost reducing innovation. This idea is a product of highly talented team of researcher of Federal Urdu University, one of the researchers Muhammad Uzair Khan is our partner who will be facilitating in further development as well. This idea is recently highlighted in Turkey by the help of Higher Education Commission of Pakistan, which provided the facility of visa and travel to represent this innovative idea which can be beneficial for the environment as well. We are starting with standard size bricks but plan to introduce customize option to our customers as well. The place for this facility will be 4 km from Pak Colony near Ibrahim Ali Bhai School which is near to Asias largest marble market. The waste of marble industry is also utilized in our product. We hope for this idea to succeed in short and long term as it provides benefits to all from constructors to society.

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December 10, 2011

2.

BUSINESS OVERVIEW

Green Brick Manufacturers is a partnership business mainly concerned with manufacturing low-cost and environment-friendly bricks. This business is an effort of six partners. Five of the partners are MUHAMMAD WAQAS, SYED MUHAMMAD ZEESHAN FAHEEM, MUHAMMAD SUFYAN KHAN, ADNAN AHMED KHAN, MOHAMMED ABDULLAHI AHMED; whereas, the sixth partner Dr Muhammad Uzair Khan, is the brother of our partner Muhammad Sufyan. The five partners (excluding Dr Uzair), have equal share in the total startup capital of Rs 7,300,000. Dr Uzair has contributed his research work and will be with us for quality and control, and other research and development related matters. Dr Uzair came up with the idea of manufacturing bricks using industrial waste as one of the raw materials during his research work. Fortunately, this idea carries great potential with it and it is this idea on which our business is based. Findings not only show that it is possible but also that this will make possible manufacturing of more reliable and durable bricks than those available in the market. Moreover, the industrial waste needed for manufacturing these bricks is regularly generated by industries and is abundantly available. Tons of industrial waste is already there in the warehouses of the industries. As there is no viable solution for disposal of this waste yet, they are compelled to keep the waste in their warehouses, which eventually increases their costs. The idea makes our business bi-directional. We are not only offering a better product, but also contributing to the effective, efficient and much more productive utilization of industrial waste. The bricks are made from ash obtained from incinerated (burnt) industrial waste. The mixture of incinerated ash, cement and sand is combined with water to obtain the material to be used for manufacturing. Our bricks are cheaper than the traditional bricks, use up to 25% less cement and convert industrial waste into raw material. Hence, our bricks accompany great competitive edge. Moreover, the demand of bricks is not seasonal in the city, bricks remain regularly in demand. Hence, our operations will be on daily basis. Our business will hardly face any seasonal fluctuations. Our factory is located 4 km from Pak Colony near Ibrahim Ali Bhai School. Moreover, we are located near Asias largest marble market, which lends another big advantage to our business. We will be delivering our product to the customers from here. At the start of our business, we will have approximately 6 regular employees in our firm. Other employees will be paid on monthly and unskilled labor on daily basis and the distributors (transporters) will be hired on contract. Initially, two standard sizes of bricks will be offered i.e. 5X8X12 inch brick and 3x8x12 inch brick. However, we also intend to offer bricks of various other sizes and customized brick option later. Primarily, we intend to focus on business-to-business transactions, and will offer our services to commercial, industrial and governmental customers. Bulk sales and long term supply agreements will be our specialty that will separate us from local small-scale manufacturer. Major construction projects will remain our preference. However, we will also involve in business-to-customer transactions. Initially, our services will KUBS | Marketing Management

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remain within Karachi. But we will look forward to the feasible opportunities of entering not only other cities of Pakistan, but also the international market. Our businesss main objective is to earn through manufacturing environmentally friendly products (currently bricks). Our business will remain in the pursuit of transforming waste into useful products. Bringing innovation in the construction industry lies at the heart of our business. We aim at continuously seeking co-ordination of concerned organizations and institutes. Through mutually profitable relationships as partners, etc. we intend to involve more and more parties in our business. We will be looking to get our product tested at the international level, which will serve as an important stepping stone in gaining international recognition. This will pave the way for us to get involved in international projects and can help us in making our business multinational. Our business strategy will be to initially penetrate the local market through our unique product and capture a large market share. We will invest heavily in research and development activities side by side, especially to introduce a wide range of products. We will make customizable products one of our specializations. Expansion will remain the core element of our strategy. Not only do we intend to expand our business from a city-wide business to a country-wide business, but also to enter the international business world depending upon the opportunity. Our researcher and partner Muhammad Uzair Khan has already talked to these industries representatives and they have assured of their full support. They are also interested in investing in the plant to be used by us for incinerating the industrial waste to manufacture bricks. Besides all this, all financial projections for the Green Brick Manufacturers have been very positive reflecting the imminent success of our business.

3.

SITUATION ANALYSIS

The situation of Green Brick Manufacturers has been analyzed using the 4C framework. 4C stands for customer, competitor (competitive analysis), company (business) and context.

I.

CUSTOMERS

Karachi is the business and industrial hub of Pakistan. The city contributes a huge share in the total earnings of our country. Being situated in the heart of Pakistan is one of the biggest advantages that our firm has. There is a huge pool of customers demanding bricks for construction. Construction-related projects are a dime a dozen in Karachi. Almost all type of construction takes place here from small-scale to large-scale and almost every construction project requires the supply of bricks. Such projects not only include the construction on industrial sites, but also the construction of apartments, bungalows, shops,

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malls, buildings, commercial areas, housing schemes, educational institutes, etc. Hence, there is a huge demand from the customers belonging to industrial, commercial, residential and other areas. Within Pakistan there is a great demand for bricks as construction itself is a necessary part of any economy. There are construction projects in other areas of Pakistan where the government, contractors, builders, real estate agencies, industrialists, etc require bricks in great quantities. However, going outside Karachi will not be our prime focus. We may consider it later when planning our expansion. Our product will remain a distinguished offering in the international market too. This reflects a great potential for our products demand abroad. The benefit of being environment-friendly will lure thousands of eyeballs to our product. There is a great probability of industrially developed nations to offer us a big opportunity of integrating with their industries to cut the cost and protect the environment. However, as moving abroad requires mammoth financial support we will look for NGOs and other international agencies to support us. International market is not our prime target now. We intend to grow domestically first and then, if a feasible opportunity arises, we will decide whether or not to enter the international business world. Contractors and builders i.e. business customers will pervade our target market. The contractors can be of all types requiring bricks for construction.

II.

COMPETITIVE ANALYSIS

In the realm of bricks manufacturing, the manufacturing methods of the firms are almost the same, traditional and backward. Our unique method of using incinerated ash in brick manufacturing will give us tremendous competitive edge against competitors. Our method reduces manufacturing cost, making it possible for us to sell bricks Rs 3 less than the prevailing market price. Our bricks will also be more durable than those manufactured by our competitors. Moreover, tons of idle industrial waste will be brought into utilization, which lends another edge resulting in environmental protection. Our product will beat the competitors price and quality; hence, there is a great probability that our product will quickly and easily penetrate the market making us the market leader.

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GREEN BRICK MANUFACTURERS- MARKETING PLAN

December 10, 2011

Traditional Manufacturers

Green Brick Manufacturers

* Bricks made up of sand, water, cement and incinerated ash * Low prices due to low cost of production * City-wide * Mainly through personal selling and direct marketing * Environment-friendly product * More durable product * Low-priced product * Industries support * Every unit of product removes every unit of waste from the environment * Innovation-oriented * Lab-tested product * Advantage of being located in Asias biggest marble market

Product Pricing Strategy Distribution Promotion

* Traditionally manufactured bricks made of cement, sand and water * Following the prevalent price (go with the flow) * Area-specific (seldom deliver to distant locations) * Almost non-existent

Strengths

* Already established and widespread firms

Weaknesses

* Backward manufacturing methods * Comparatively less durable product * Resistant to change * Almost no innovation * Product not linked with environments protection * Comparatively high-priced product * Comparatively low-quality product

* Threat from pressure groups * High chances of opposition from competitors (triggering rivalry)

SWOT Analysis
The SWOT analysis of our business is presented below. S stands for Strengths, W for Weaknesses, O for Opportunities and T stands for Threats. Strengths Our bricks price on average is Rs 2 to Rs 3 less than what competitors offer, due to the usage of incinerated waste that reduces cement usage up to 25% in manufacturing. Our bricks are more durable than those available in the market. Our bricks are less water absorbent, which will give extra protection from dampness during rainy seasons. KUBS | Marketing Management

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Our product bricks, are environment friendly as they are formed with industrial waste. Every brick formed is every unit of earth saved from being polluted. No potential aspect has been identified so far that makes our product inferior to those available in the market. Weaknesses Our product and eventually our success depend solely on industrial wastes supply. If the supply of the waste is stopped due to any reason, we will not be able to manufacture such bricks. There are cartels and pressure groups in the market which support certain business groups (our competitors). If they turn against us, we cannot do much to prevent them from interfering in our business. We do not have an up-to-date state-of-the-art research and development department. It can be difficult for us to reply to any change in the market resulting from the introduction of substitutes, etc. Being located in Karachi in fact in Pakistan is our weakness in the way that there is frequent political disturbance here. We do not have huge investment portfolio, any big problem can question our existence. Opportunities Our unique product opens the vistas of opportunities for us. There is no other such product in the market, so there is potential chance that we could easily capture more and more markets. The availability of tons of industrial waste and its continuous production offers us the opportunity to set up this business and continue it. We are located in Karachi, which is the heart of our country. Availability of well-built infrastructure will facilitate us in many operations. Threats For threats, please read Competitive Forces.

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Competitive Forces
Michael Porters five-force model is being used to analyze our businesss situation. The model is presented below:

Potential entrants
(Threat of mobility)

Suppliers
(Supplier power)

Industry competitors
(Segment rivalry)

Buyers
(Buyer power)

Substitutes
(Threat of substitutes)

Threats posed by these forces in our situation: Threat of intense segment rivalry

With the introduction of our product in the market, initially, we will find no competitors except those manufacturing traditional bricks. It will be easy for us to start capturing the market and gain a larger portion of market share. The big contractors of bricks, who have invested their big investments in brick manufacturing or the same projects as we intend to target, there can be a fierce rivalry. Also, our competitors might come up with the same offering as ours or a similar one which can then stimulate intense competition. This intense segment rivalry can prove fatal for us as we will have to keep pooling in resources to tackle them. With our costs sky-rocketing it might become difficult for us to continue.

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Threat of new entrants

Another threat we might face is the entry of new competitors. And it is probable that we will face it. This business does not pose any barriers legally or financially. Machinery is available, does not require very skilled labor, raw material is easily available. There are many very rich parties and business groups who can easily get into this business seeing its success. They might form cartels and use pressure groups to throw us out of business. Also with the entry of new entrants into the market the market environment will become very competitive, which can harm our smooth running business. Threat of substitute products

Introduction of our product will bring a new dimension in brick manufacturing following which our competitors will definitely look for bringing substitute for this innovation, like trying new combinations. Due to advancement in technology and plenty of resources it can be possible for the foreign institutes to introduce such ideas or products which could work as substitutes to our innovation. The substitute products, if introduced, can prove threatening for our business as it is difficult for us to afford the continuous research work to match their scale. Threat of buyers growing bargaining power

Initially, it is not expected that buyers bargaining power will grow as only we in the market will be offering such bricks. We might be price setting firm where we will be in the position to set our own prices and to easily beat our competitors price. Customers will surely buy our cheaper and more durable product in this case. But with the passage of time it is quite possible that the competitors will seek a response to our product in the form of a substitute or a similar product. They might also use a similar manufacturing technique, which will increase the options available to our customers. If so, the bargaining power of the customers can increase putting pressure on our business. There might be other unexpected factors too which might raise customer bargaining power. Threat of suppliers growing bargaining power

Industries producing tons of industrial waste are our suppliers on which our entire business depends. And they will be supplying us industrial waste mainly for the purpose of the disposal. Initially we do not expect their bargaining power to grow because in a way we are relieving them from the burden of waste management. Yet, if a way to dispose of this industrial waste is introduced, it is quite probable that the industrialists will switch to that method. In this way, their bargaining power can increase too much and it will become a great challenge for us to convince them to keep supplying the waste to us. If they do not agree to continue their supply to our business, we will lose raw material supply and eventually we might disappear from the market. The other possibilities which can increase suppliers bargaining power

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include introduction of substitutes, introduction of even lower cost consuming manufacturing method that will beat our prices, adoption of similar manufacturing method as ours, etc.

III.

COMPANY

Green Bricks Manufacturers

Mission:
We are a business entity We use the industrial waste in innovative ways and form practical reliable products. To research, create and promote solutions that are valuable to customers, which are high in quality, environmentally safe and long lived.

Core Values:
Our core values are: I. Social responsibility and commitment We do Business for betterment II. Continuous improvement Finding more effective solutions III. Creativity and innovation Finding novel ways to use the industrial waste IV. Human resource development People are the most valuable asset in our business Green Brick Manufacturers is a partnership business that consists of six partners. The five partners are friends; i.e. Muhammad Waqas, Syed Muhammad Zeeshan Faheem, Muhammad Sufyan Khan,

Adnan Ahmed Khan and Mohammed Abdullahi Ahmed. The sixth partner is Dr Muhammad Uzair
Khan. He is the brother of our Partner Muhammad Sufyan. Dr Uzair brought this idea during his research work, which has been transformed from a mere idea into Green Brick Manufacturers by our collective efforts. Startup capital of Rs 7,300,000 will be raised by the five partners (friends) through equal

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contributions of Rs 1, 460,000 each. The sixth partner Dr Uzair, will include his research work and will deal with the quality control related matters. Green Brick Manufacturers is mainly concerned with manufacturing low-cost and environment-friendly bricks. Our factory is located 4 km from Pak Colony near Ibrahim Ali Bhai School and Asias largest marble market. Initially, our business will focus on city-wide customers and operations. However, with the passage of time, we also plan to expand if feasible opportunity comes up in the future. We will also look forward to entering the international market if the situation permits.

IV.

CONTEXT

The construction industry of Pakistan bears immense importance for the stability of the economy; it uses about 9% of the total labor force of Pakistan. The manufacturing of bricks is directly linked with the prosperity of the local construction industry. Due to less mechanization, our construction industry is more labor intensive. This is why the construction industry is labeled backward very often. The non-use of latest technology, old ways of management, outdated procedures, etc. are some of the main factors contributing towards the backwardness. Same is the case in brick manufacturing. The traditional mindset of the manufacturers, adapting to change is hardly found. Even the concept of research is almost completely absent. Long working hours combining with underpaid jobs remain the grievances of the workers. Moreover, completion of the construction projects usually runs over the estimated time and cost. The above overview clearly depicts the backwardness of Pakistans construction industry and brick manufacturing as compared to the world where developed countries remain involved in research and development process. The developed countries bricks and other construction materials are found in great varieties and are far more excellent in their respective areas. The brick manufacturing process in Pakistan resembles that of the underdeveloped countries in South Asia region. It specially bears a close resemblance with the backward brick manufacturing process found in Bangladesh and in parts of India. The variety of bricks include traditional bricks made by combining sand, cement and water, fired bricks, fired clay bricks, fired clay bricks (high alumina), etc. Handmade and machine-manufactured, both types of bricks are found.

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4.

MARKET INFORMATION (OPPORTUNITY AND ISSUES)

Brick manufacturing internationally has gained tremendous importance, so much so that it has itself taken the form of an industry in many countries and is worth in billions. For example, our neighbor India alone has the brick manufacturing industry of worth US $140 billion annually. In the developed countries there has been a consistent research work in brick manufacturing field leading to many advances. Yet our method remains unique of its kind; thereby, opening international opportunities for us. However, in many parts of the world the brick manufacturing methods remain crude and outdated as in Pakistan. According to the Annual Economic Review of State Bank of Pakistan for 2008-2009, the share of construction industry in GDP growth rate was 2.4 percent. The brick manufacturing methods in Pakistan are backward and out-dated, and research in this context is almost absent. The traditional old methods, including the method of mixing sand with cement and water to manufacture bricks, are prevalent. With the passage of time some advancement has taken place and brick manufacturing has begun to be carried out through machines too. Both hand-made and machine-made bricks can be found in the market. Moreover, something very positive in the move toward advancement is that many brick manufacturers have come online too. They receive the orders from their customers through the internet and transport the bricks to the requested location, after which the payment is received. However, there is a plenty of room for more advancement in the prevalent brick manufacturing processes. Despite the backwardness brick manufacturing remains the backbone of Pakistans construction industry. In the realm of bricks manufacturing, the manufacturing methods of the firms are almost the same, traditional and backward. Our unique method of using incinerated ash in brick manufacturing will give us tremendous competitive edge against competitors. Our method reduces manufacturing cost, making it possible for us to sell bricks at about Rs2 to Rs3 less than the prevailing market price. Our bricks will also be far more durable than those manufactured by our competitors. Moreover, tons of idle industrial waste will be brought into utilization, which lends another edge resulting in environmental protection. Our product will beat the competitors price and quality; hence, there is a great probability that our product will quickly and easily penetrate the market making us the market leader.

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5.

OBJECTIVES

The Key objectives for Green Brick Manufacturers are: 1. To be recognized as safe and durable brick manufacturers throughout the regional market in the first two years. 2. To achieve the sales target of 69,000 bricks in first year of operation and 145,000 bricks in 2013 (second year of operation).

Break even analysis Year 2013( 2nd Year of operation)

Selling price Variable cost Contribution margin Fixed expenses Breakeven point in units 8 3.8 4.19 550400 131,055

3. To exceed the breakeven point of 131,055 Bricks before the end of the 2nd quarter of second year. 4. To become profitable to minimum level of Rs 28,000 in second year. 5. To gain the support of international environmental protection agencies in research and further product development. 6. To gain the government contractors of large project with Karachi and Hyderabad. 7. To become the first priority of brick purchasers who want bricks for construction on large scale.

6.

MARKETING STRATEGY

Our focus will be to cover the aspects the local manufacturers often ignore. Long term agreements and just in time partners of construction projects. Also research to improve the block strength and letting the customers know what we are doing to improve our product.

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7.

TARGET MARKET

Initially contractors and builders i.e. business customers will pervade our target market. The contractors can be of all types requiring bricks for construction. However, with the passage of time we also intend to penetrate the consumer market. Hence, looking forward to carrying out both business-tobusiness and business-to-customer transactions simultaneously. Yet, our prime focus will remain on business-to-business transactions.

8.

POSITIONING

Green Brick Manufacturers will establish itself as a cost saving, environment friendly, durable and reliable supplier of raw material to construction contractors.

9.

MARKETING MIX
I. PRODUCT

Our firm offers bricks as a product to customers. The bricks are made of a conventional material with addition of incinerated ash (a complement). The combination results in 25% less cement usage and significantly improves durability of the bricks as compared to traditionally prevalent bricks. The incinerated ash is obtained from industrial waste which is easily and abundantly available, textiles, chemical and marble industry waste is to be utilized. Asias largest marble market is just a few kilometer from the sites. The waste is in the form of sludge, which is dried out and burnt to obtain the incinerated ash. The mixture of incinerated ash, cement and sand is combined with water to obtain the material to be used for manufacturing. The materials composition is as follows:

Material
Cement

Composition
8%

Ash(burnt industrial waste) 3% Sand 89% 13

We will initially offer standard blocks of 3X 8 X 12 inch and 5X 8 X 12 inch. However, when requested, it can be altered according to the customer requirements. The quality of our bricks and their durability is KUBS | Marketing Management

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much more than our competitors making our product a low-priced good-quality distinct offering. We will look forward to get our product certified by international agencies.

II.

PRICING

The price of our bricks will be Rs7 for 3 X 8 X 12 inch blocks and for 5 X 8 X 12 inch blocks it will be Rs10, which is around Rs 2 to Rs 3 less than the price of bricks in the local market. Hence, our price will give us the competitive edge against the competitors and will greatly help in penetrating the market with tremendous growth potential. Moreover, the quality of our bricks and their durability will be much more than the competitors, making our product a low-priced good-quality distinct offering. Other than the regular price, we are offering discounts to our customers in the form of different packages. Like early-order discounts, early-payment discounts and bulk discounts. However the extent of discounts will be dependent on the deals because the raw material rates differ from day to day. Besides this we will be doing transactions on credit basis too but prompt payment will be encouraged through discounts. Special discounts will be given to long-term major project contractors. Moreover, we offer 15% discount if we receive the order one week before the delivery date. We will also offer 20% discount if our customer uses his own warehouse for the storage of the ordered bricks.

III.

PLACEMENT (DISTRIBUTION)

Our distribution network will cover entire Karachi. The distribution network will include trucks, trolleys etc from specified transportation providers on contract. At first, our distribution network will not be that big, but in the coming years there is a great potential for the expansion of our network. Our distribution network will expand as the demand of our bricks increases. Quick delivery will always remain our preference, at starting we will promise the delivery of bricks in the same day as the order is received. Later promise to deliver will shrink to within hours. Timely delivery will be guaranteed. We will charge transportation cost separately from the cost of bricks. Transportation charges will vary from order to order depending on the delivery location and other factors.

IV.

PROMOTION

ADVERTISEMENT
PRINT MEDIA 14

Initial public awareness will be ensured via Print media and electronic media. Advertisement will be placed in Sunday Jang news paper for 1 month.

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ELECTRONIC MEDIA

Housing projects running advertisements on cable will be contacted to run a joint advertisement, featuring the point that this project will use Blocks supplied by Green Brick Manufacturers. SIGN BOARDS

Sign boards will be displayed on project sites where these bricks will be used This project is build with Green Bricks. BROCHURES AND BOOKLETS

A three color brochure designed on adobe Photoshop will highlight our innovative idea, offers, and location of our business, contact number along with website address for further information. Initially we will print 300 Brochures and distribute it to contractors of construction and will also print booklets having some extra details especially for builders working on construction projects, offering them special discounts on long term contracts, payment and delivery details etc.

SALES PROMTION
We are offering discounts to our customers in the form of different packages. Like early-order discounts, early-payment discounts and bulk discounts. However the extent of discounts will be dependent on the deals because the raw material rates differ from day to day. Besides this we will be doing transactions on credit basis too but prompt payment will be encouraged through discounts. Special discounts will be given to long-term major project contractors. Moreover, we offer 15% discount if we receive the order one week before the delivery date. We will also offer 20% discount if our customer uses his own warehouse for the storage of the ordered bricks.

PUBLIC AWARENESS AND PUBLICITY

Seminars will be arranged in universities for public awareness of our idea and brand. Several articles and interviews of our researcher are already printed in renowned newspapers like Jang, The news, Dawn news and many more. There was a symposium in the previous month in Turkey where this was presented by our researcher DR. Uzair Khan who went to turkey for this purpose by HEC. This promoted the idea but our brand will be promoted through advertisements in papers. We will collaborate with international agencies to further improve our product; this will ensure our existence is known to the higher ups of government who collaborate with these agencies. This will attract the attention of government contractors who seek cheap but reliable material for construction.

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EVENTS
Grand opening on 1st January, 2012 will be arranged on site. Our team of researchers, who contributed this idea with their mentor who headed this research project, will be invited. Also international environment protection agencies representatives will be invited. Media will be covering the event which will be highlighting it in news. World Environment Day (WED) is an annual event that is aimed at being the biggest and most widely celebrated global day for positive environmental action. WED activities take place all year round but climax on 5 June every year, involving everyone from everywhere. We will celebrate this event and invite people from society, EPA, international environment agencies, contractors, builders and media for awareness regarding our product.

WEBSITE
A website will be developed with the address www.greenbricks.com.pk. This website will provide information 24/7. It will also enable B2B customers to place orders online and customize the size of the bricks, which cost them an additional amount in case they choose a product customized to their size. Website will be launched one month in advance and it will be updated on daily basis. Our marketing head along with the sales team will follow up the orders online. Since initially we are operating in Karachi only. Therefore it will be not be wise to pay some search engine for keyword search. We will promote our website through brochures, booklet, signboards and visiting cards mentioning For further information please visit our website www.greenbricks.com.pk.

WORD OF MOUTH MARKETING

Our product is less costly than ordinary blocks and we are targeting specifically B2B customers who focus on cost plus reliability. These contractors often have contacts with each other, our satisfied customers will tell others about this product and we will reward those customers with discounts who bring other customers to the company.

PERSONAL SELLING
Our primary tool of sales is personal selling. A team of two energetic sales people under supervision of our marketing manager will approach contractors through various media like telephone, email, or a visit to their office. Sales people will initially focus on giving the information to these contractors about our business, what we offer; how we ensure a consistent and reliable supply of Bricks and at what prices they can get this product.

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10. OPERATIONS
I. LOCATION OF OUR FACILITY

Our factory is located 4 km from Pak-colony near Ibrahim Ali Bhai School and Asias largest marble market.

ADVANTAGES
Proximity to suppliers
We require the industrial waste of textile, chemical and fiber industries which are very close to our factory. This area has both residential and commercial plots with huge factories. Transportation is easily available for public and goods. Asias largest marble market is also very close to location and we use 3% marble power in blocks manufacturing. Water hydrants are also in front of our factory so we have plenty of water supplies. Sand and cement availability is also convenient.

II.

OUTSOURCING:

This has been an established practice of the firms that they store the industrial waste whenever it is generated. 350 million gallons of industrial waste or affluent is released every day in Karachi alone for which the firms have currently no viable solution, as there is no system Land filling. Moreover, the firms incur cost in keeping the waste with them. The industrial waste obtained from chemical industry is in sludge form, it needs to be treated in a plant specially designed for it. There are only two such plant in Karachi. One is privately owned and other is owned by CDGK. Therefore they are either storing waste in their warehouses or dumping it in nights illegally. We plan to ask these companies to pool in funds to establish an incineration plant near their factories where this sludge will be treated and will be converted to ash. As the waste after incineration gets reduced to 1/10th of its size and mass, it is easy and economical to transport it. As this plant will remain the combined property of these companies we label it outsourcing.

Proximity to labor Residential areas are also close to our factory from where we can hire skilled labor easily at standard rates of the locality.

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December 10, 2011

III.

PROCESS

We will start processing the orders as soon as they are placed as well as per our policy we will maintain an ending inventory of 30 % of the expected sales in the next quarter. The process of making brick generally consists of the following steps: 1. Taking waste material from textile, chemicals and fiber industries burning that waste to form ash in the facility funded by the group of industries whom we will help utilize their waste. 2. Gathering, crushing, grinding, screening, and mixing the raw materials (Sand, Water, Cement, Ash). The materials composition will be as follows: Material
Cement

Composition
8%

Ash(burnt industrial waste) 3% Sand 89%

3. 4.

Machine can form the bricks at a very rapid pace around 2,000 bricks per hour. Setting, drying, packaging and inventorying the final product.

Other concerns Store raw material like cement, sand, ash in dry and safe place with shelter and also near to machinery as shown in the initial layout plan. Hire workers for cleaning, oiling, fueling and maintaining machinery and cleaning the factory. Provide a clean office space environment for Clients to do business dealings.

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GREEN BRICK MANUFACTURERS- MARKETING PLAN

December 10, 2011

Entrance Warehouse For Raw materials

Machine

Shelter Bricks

Lab Office Exit

Figure: Facility Plan

11. REVIEW AND CONTROL

Finance Head, Muhammad Waqas will be responsible for controlling the cost on monthly basis, assuring as per plan; 1. 2. 3. 4. Cash flows Receivables Payment to suppliers Controlling the cost and expenses

Marketing head Zeeshan will be responsible for following the Action plan as per agreement between the partners and capturing the customer feedback, assuring that his team of sales people successfully establish and maintain contacts with key customers. 19

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GREEN BRICK MANUFACTURERS- MARKETING PLAN

December 10, 2011

12. MARKET ORGANIZATION

Syed Muhammad Zeeshan Faheem will be the marketing head, who is one of the partners in this business. Zeeshan will be supported by senior manager and CEO Muhammad Waqas. Two sales people will be working under Mr. Zeeshan, who will be responsible for smooth and as agreed action plan of the marketing department of Green Brick Manufacturers

13. ACTION PLAN

ACTION Development of website Grand opening Distribute brochures and booklets Display signboards Display advertisement in Jang news paper Display advertisement in Jang news paper Make contacts with contractors and builders Display advertisement in Jang news paper Display advertisement in Jang news paper Certify the durability from internationally recognized lab Republish brochures and booklet highlighting the certificate of durability Celebrate World Environment day

DEC JAN 30TH 1st 10th 30th

FEB

MARCH APRIL MAY

5th 12th 15th 19th 26th 15th 30th 5th 20

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GREEN BRICK MANUFACTURERS- MARKETING PLAN

December 10, 2011

14. BUDGET

ITEM
Development of website Grand opening Distribute brochures and booklets Display signboards Display advertisement in Jang news paper Display advertisement in Jang news paper Make contacts with contractors and builders Display advertisement in Jang news paper Display advertisement in Jang news paper Certify the durability from internationally recognized lab Republish brochures and booklet highlighting the certificate of durability Celebrate World Environment day TOTAL

DATE OF COMPLETION
30th DEC 1st JAN 10th JAN 30th JAN 5th FEB 12th FEB 15th FEB 19th FEB 26th FEB 15th MARCH

COST
Rs. 10,000 Rs. 20,000 Rs. 2,000

MEASURE OF SUCCESS
Hit rate of 1000 per month 150 people in attendance Distribute to 300 prospects Displaying the sign board so it is visible from the road. Featured on page 2 Featured on page 2 Make contacts with 100 contractors Featured on page 2 Featured on page 2 Receive a certificate of durability

Rs. 3,000

Rs. 5,000 Rs. 5,000

Rs. 30,000

Rs. 5,000 Rs. 5,000

Rs. 8,000

30TH APRIL

Rs. 2,000

Distribute it to more than 300 prospects Attendance of 200 people

5TH JUNE

Rs. 10,000 Rs. 105,000

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GREEN BRICK MANUFACTURERS- MARKETING PLAN

December 10, 2011

15. CONTINGENCY PLAN

Our one weakness can be demand management. We are expecting a sharp increase in demand of our product which will be hard to fulfill in initial 1st year of operation. We have a limited storage capacity and we are operating in a plant of 1000 sq. yard which might not be enough to cater the increasing demand. This might give our competitors; a chance to snatch these untapped customers and will hurt the reliability of supply agreements. We plan to accommodate this gap with our strategy. First we have purchased a very heavy semi automatic machine of 5 Lac rupees. Which is capable of forming 2,500 bricks in just one hour which if operated at full can produce as much as 30,000 within 12 hours of operation. Second is the issue of warehousing. We can tackle this issue by renting some ware housing facility in nearby area. As it is industrial area large warehousing facilities are available.

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SUPPORTING DOCUMENTATION

GREEN BRICK MANUFACTURERS- MARKETING PLAN

December 10, 2011

16. FINANCIAL SEGMENT

I. PROPOSAL

Total start-up costs for Green Brick Manufacturers will be Rs 7,300,000. This includes cost to purchase the necessary Land, equipment, supplies and beginning cash on hand. The start-up period for the venture will run from 1st December 2011 till end of the year. The opening day for this facility will be January 1, 2012.

II.

FINANCING PLAN

The following chart breaks down the start-up costs and sources of capital.

Amount Rs Amount Rs Rs Rs Rs Rs Rs Rs 4,000,000 7,300,000

Sources Equity Uses Land

400,000 office+ constructed warehouse+ lab 1,800,000 Tax on sale agreement

500,000 Machine 200,000 Furniture+ computer 400,000 Startup operating Expenses. 7,300,000 Startup Capital I

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GREEN BRICK MANUFACTURERS- MARKETING PLAN

December 10, 2011

17. FINANCIAL FORECAST

I. INCOME STATEMENT

The income statement is based on the educated estimate about sales mix 30% 3x8x12 inch block and 70% 5x8x12 inch block and average price of Rs 7in year 2012 Rs8 in year 2013, Rs 9 in year 2014. Assuming the sales mix remains constant, here are the financial projections. Note we are not mentioning sales in terms of units it is because we have a sales mix. Note: all Figures are in Rupees. Year 2012 Year 2013 Year 2014 Year 2015 Year 2016 UNITS SOLD SALES PRICE 69,000 7 145,000 8 7.3 194,000 9 6.5 229,000 10 6.1 248,500 11 6.0

COST OF GOOD S SOLD 11.6

Green Brick Manufacturers Income Statement For the Year ended Dec 31 Sales Less: COGS Gross Profit Operating Expenses Marketing expenses Utilities Property tax Depreciation Expense Total Operating Expenses Profit before taxes Less Income Tax Net Income or Loss Rs105,000 Rs3,000 Rs1,700 Rs9,000 Rs27,700 -Rs438,317 Rs0 Rs (438,317) Rs50,000 Rs3,000 Rs1,700 Rs9,000 Rs63,700 Rs31,533 Rs1600 Rs 29,956 Rs34,000 Rs3,000 Rs1,700 Rs9,000 Rs47,700 Rs428,881 Rs21,444 Rs 407,437 II Year 2012 Rs483,000 Rs802,617 -Rs319,617 Year 2013 Rs1,160,000 Rs1,055,433 Rs104,567 Year 2014 Rs1,746,000 Rs1,269,419 Rs476,581

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GREEN BRICK MANUFACTURERS- MARKETING PLAN

December 10, 2011

II.

BALANCE SHEET
Green Manufacturing Brick works Pro forma Balance Sheet As on Dec 31 year 20__
Year 2012 Year 2013 Rs 85,529 Rs 88,200 Rs 98,264 Rs 271,994 Rs 4,000,000 Rs 500,000 Rs 400,000 Rs 100,000 Rs 100,000 Rs 273,600 Rs 4,826,400 Rs 5,529,956 Rs 5,500,000 Rs 29,956 Rs 5,529,956 Year 2014 Rs 1,396,967 Rs 109,200 Rs 107,966 Rs 1,614,133 Rs 4,000,000 Rs 500,000 Rs 400,000 Rs 100,000 Rs 100,000 Rs 410,400 Rs 4,689,600 Rs 5,907,437 Rs 5,500,000 Rs 407,437 Rs 5,907,437

Assets Cash Accounts receivables Inventory Total current assets Fixed assets Land Machine Building Furniture Equipment less accumulated Depreciation Total Fixed assets Total assets Liabilities and owners equity Owners Equity Retained earnings Total liabilities and owners equity

Rs 106,406 Rs 59,850 Rs 36,641 Rs 202,897 Rs 4,000,000 Rs 500,000 Rs 400,000 Rs 100,000 Rs 100,000 Rs 136,800 Rs 4,963,200 Rs 5,062,683 Rs 5,500,000 Rs -437,317 Rs 5,062,683

III

KUBS | Marketing Management