MARKETING PLAN

SUPERLIGHT CONCRETE BLOCK

I. Executive summary

II. Current Market Situation

We decide to enter the market of industrial material (contructing block/brick) because it is a potential market in Vietnam. Traditionally, baked bricks are commonly used in contruction in Vietnamese market. However, due to its bad effects on environment (clay exhaustion, toxic chemicals emission), baked bricks are used less and less. Moreover, Government also has policies to promote the production and use of non-baked bricks. Technology of superlight concrete block has penetrated Vietnamese market several years ago. Nevertherless, because of traiditional habit and price disparity, Vietnamese people still prefer baked clay bricks than concrete panel. As a result, market for super-light concrete block is very potential and growing gradually in Vietnam. The competion is relatively high in the market and demand is going up and up due to the industrialization in the nation. Some big companies that also produce concrete brick are Trung Hau machines and new materials manufacturing joint stock company (Ho Chi Minh city), Dat Viet corporation and Khang Minh brick joint stock company. They are our main competitors in the unbaked brick market beside traditional baked clay bricks manufacturers. 1. Market description SUPERBLOCKs market consists of consumers and business users who prefer a new material which is lighter and more durable for constructing projects. Table below describes how SUPERBLOCK. Targeted segment Construction companies/corporations Customer need * Durable Corresponding benefit * Durable input materials and new technology * Mass production and waste input materials -> low price * Light weight bricks reduces

* Cost saving

cost on construction * Time saving

the

ground

* Building with superlight concrete is 20-30% faster than baked bricks due to bigger size and lighter weight * Very light (can float on the water) * Durable input materials and new technology

* Easy for delivery Households * Durable

* Easy to use for special * Different shape and size design (karaoke room, pools) * Easy to delivery 2. Product review Superlight Concrete Brick SCB * The SCB produce by Superlight Concrete Brick - production line. * The main material are sponges, this decide the cost of product * SCBs structure is millions of tiny bubbles connected, like a honeycomb-hole-system with micro size and water resistance. * With the structure, SCB also resist sound, heat, and fire. Therefore, SCB suitable construction works require high standards as hospitals, hotels, schools ..., especially, with building or in areas with harsh climatic conditions. * Light

Specific Weight Products (Kg/m3) 400 SCB -Separator 500

Compressive Strength (N/mm2)

compressive strength of the actual production (N/mm2) 7.5 10

600 SCB -WallSeparator 700 800 900 1100 Block, bearings wall 1200 1600

20 25 30 35 -

25 35 50 70 100 125 150

3. Competitive review * Trung Hau: The first company to apply the superlight concrete bricks technology in Vietnam. They have established several subsidiaries in the southern Vietnam. Their products are a bit light and durable. * Dat Viet: A new company entering the unbaked bricks. It produces concrete bricks. However, its product average weight is heavier than others. They only focus on manufacturing bricks for small and medium-sized constructiong projects. * Khang Minh: Another new company penetrating the maket. It produces concrete bricks also. Their products are also heavy, but diversified shape and size. They also, only produce bricks, no wall block. * Traditional baked clay brick manufacturers: Market is now dominated by baked bricks (about 90%). They are cheaper and have peoples preferences.

4. Channels and Logistics Review Current channels and logistic: Companys using multi-channel distribution system including: Direct channel: for Car and Car product. No department who is in charge of selling construction product Wholesaler: + Company in Car product (not potential) + Wholesaler for brick and Gch lt

These wholesalers are working in Northern Vietnam only, so we are too rely on their task. Retailer: is who directly contract with our firm for their orders. Often they are smallmedium sized stores for housing and small project. + Hanoi: 10 stores, from city to the countryside + Haiphong: 3 stores, only in the city Conclusion for the review: + We need select 1 more wholesaler for this new product + Opening and training sale people who will work with big clients in the future + Advertising current retailers about our new product, and develop stores in other developing cities such as Quang Ninh or Nam Dinh Logistic Warehouses: 2 in Hanoi and 1 in Haiphong We have big trucks system for huge orders of clients, wholesaler as soon as they need For smaller-medium sized stores, we use service of motor-distribution companies.

III. SWOT analysis

Strengths: + Diversity of features: SBC has lots of highlight advantages compared to traditional brick, for example, soft, sound insulation, heat insulation, easy to manufacture, easy to combine + Pricing: Our product is priced lower than competing firms, which gives us an edge with price-conscious customers. Weaknesses: + Lack of brand awareness: Our company has no established brand or image. We will address this issue with aggressive promotion + Distribution requirement: manufactured bricks have to be shipped that need a logistic channel to finish this task. It is a disadvantage from traditional concrete, which can be made immediately, thanks to usage of water and cement. Opportunities: + Increasing demand of using superlight concrete brick: the market for soft ingredient in construction is increasing; buildings and apartments tend to use light bricks to avoid accidents and enhance the age of houses. Besides, SCB is cheaper than the other, helping firms to reduce the input cost.

+ Cost-efficient technology: Better technology is now available lower cost than other competitors. Thus, our company can incorporate advanced features at a suitable price that allows for reasonable profit + Supported policies: Government encourage enterprises to apply this kind of concrete and brick, because of their effectiveness and efficiency. Threats: + Increased competition: more companies are entering Vietnamese market with superlight concrete that offer some but not all the features and benefits provided by our product. Therefore, we must stress our clear differentiation and price. + Economic crisis: Because of the economic crisis from 2010 until now, the construction picture was becoming darker, and almost building projects were cancelled, which affects a lot to the development of or product.

IV. Objectives and issues

1. First year objectives Sale volume of the first year is 1 billion blocks. 2. Second year objectives Our aim is mass production to reduce cost and break even in the end the year. 3. Issues Create a brand name. SUPERBLOCK will be official brand name for our product. The most important and immediate task in the first year of operation is to raise customers brand awareness.

V. Marketing strategy
Our main business target is large construction corporation. 1. Positioning SUPERBLOCK will be a product of the high quality (durable, light, sound-proof and fire-proof) and reasonable price.

2. Product strategy

- Product features in Product Review section. - Extend the product line to ceilling block, floor block. 3. Pricing strategy Market-penetration pricing strategy We try to reap as large market share as possible in the first year. Price will be introduced at * 1000 VND per separator block. * 2000 VND per wall separator block * 5000 VND per bearing wall block Next, we expand the production to achieve economies of scale, and continuously, reuce the price by 500-1000 VND per block. * 500 VND per separator block. * 1000 VND per wall separator block * 4000 VND per bearing wall block The aim is to become leader in the field. 4. Distribution strategy dfdf
Our company Our company Our company

Wholesaler

Wholesaler

Retailer

Customer

Customer

Customer

Viet-Nga VRG can directly deliver Superblock to customers with the value of construction above 50 billion VND. These big customers usually have enough cash to pay immediately to our company to remanufacturing. By this channel, they can enjoy the lowest price and create competitive advantage for their product. However, there is significant number of customers with the lower value of construction. The characteristic of this group is that they are not willing to pay cash immediately for the material suppliers so that they usually trade through the wholesalers. To access to this type of customer, our channel strategy is to use selective distribution, marketing through well-known wholesalers and building good relationship with them. In support of our channel partners, we will provide them with demonstration product, detailed specification handouts as well as other discount and allowance conditions. This strategy gives us good market coverage with more control and betterthan-average selling effort of the wholesaler. The last group of customer is household consumers. They usually purchase with small quantity of product. Therefore, using retailers will be easily to reach this kind of customer. Our strategy will be to encourage the wholesalers to push Superblock to retailers at crowded areas. 5. Marketing communication strategy - Online marketing - TV advertising - Sale promotions 6. Marketing research - From marketing research, customers needs are achieved and addressed. Feedback form tests, surveys, and focus group help us improve the quality and features of our products. - Also, we measure brand awareness among targeted customers and their satisfaction level to our new products. 7. Marketing organization Mr. Duc will be the Chief Marketing Officer.

VI. Action programs

The season of construction industry often lays from June to December. In order to prepare for our innovative product, we create the time line including preparation and activities for the first year.

Product will be officially available at February, 2013 A. From November 2012 to February 2013: Preparing, reaching some big construction companies. - We will introduce the new construction product via exhibitions - Brand building via sponsoring - Hold seminar about new product, invite government companies, essential construction companies (tng cng ty xy dng Sng , 4 example), receive very first orders - Build up the sale representative department (10-15), send them to big customers. (From January 2013- February 2013): rarely advertising via Radio (VOV giao thng- H Ni, Haiphong) B. From February to the end of May. * February: Launching new product. - Advertising: radio advertising (advertise in other regions such as ThaiBinh, NamDinh etc), sale people, newspaper. (to reach middle project and household construction) - Sale: direct supplying the big clients (who ordered at part A) - Starting build up the distribution networks which is focusing on North Vietnam. * February to the end of May - Continue the advertising program and enhance it to new regions (ThaiBinh, QUang Ninh, etc), reduce the sponsoring activities. - Building Northern distribution network: + Directly supply to government companies, big clients- individual marketing. + Wholesalers: who will distribute to middle project such as factory, schools, etc. (1-2) + Retailer: who distribute the product to Household, small buildings- focusing on Hanoi, Haiphong and Quang Ninh where have high demand. - Sale activities: limited activities C. From June 2013 to September 2013

- Enhance advertising activities, start using TV advertising, only sponsor important events. - Enjoy sale increase in Northern Vietnam through construction season. - Running promotion activities: + Discount for big order + Reward wholesaler and retailer according to orders. + Using premiums/ contest or game to attract small customers: Golden Ring, Cars, etc. D. Activities for second year - Build up customer relationship, value chain, enhance the distribution channels +advertising via Radio, TV, newspapers, Internet +individual marketing +communicating with customers: directly via e-mail, phone, and meeting or via feedback. - Open second network in HCM city, focusing on Industrial cluster. - Consider decrease the price to attract customers and create competitive advantages due to economies of scale.

VII. Budgets

IX. Controls
* Control the economic situation: sale, revenue, profit, etc. * Control the advertising programs, have reaction when these activities arent useful. * Tightly control the relationship with big customers: - Carefully communicate with them - Deeply involving in their activities - Collect feedback, ideas and complains via email, phone or meeting.

* Control the retailer and wholesaler relationship: - Collect their feedback on price, policies and so on. - Collect feedback about distribution channels from customers via hot-line. Medium and small size customers can easily give comment on product, services qualities and so on. * Control the market demands, competitors reactions, and technology advances. - Create department to research the market, rivals and others subjects. * Have department to be in charge of making reaction plans.

X. Group activities schedules

Activities Start Date Member Resources General information about company and its new product Risks Cannot get contact to the company

Choose the company

09/05/2012

Group

Make a list of information about the company that needed to be found. Make a draft interview questions Contact to the company, send draft questions to it and schedule a meeting Have a first meeting with MKT manager to ask briefly about new product of the company Prepare official questions about new

11/05/2012

Minh c, Trng An, Minh Cng

Cannot get contact to the company

13/05/2012

c Thnh, nh Cnh

They do not accept the meeting

14/05/2012

Trng An, Hng Dng

Cannot receive enough information General report, official document Cannot be answered

14/05/2012

Group

product details for the interview Interview MKT manager and CEO 6 7 8 Interviewer 15/05/2012 Video Recorder Summarize 19/05/2012 Group Group Hng Dng, c Thnh

from company

clearly

General report, interview preparation

The interviewees do not answer all the prepared questions

Write the Outline Prepare the raw report assignment Prepare the slide Prepare the official report assignment

Total document and interview information Total document and interview information Total document and interview information

Group Minh Cng, Minh c, nh Cnh

10