Wintek Marketing Plan PDF

SAUDI INDUSTRIES for PVC WINDOWS CO. LTD

Business and Marketing Plan

Business & Marketing Plan

Executive Summary

Environmental Scanning Macro-Economic.

STEEPLE Analysis.

Constrictions & Building Sector Analysis ( Market Life Cycle ).

SWOT Analysis & TOWS Strategy.

Marketing and Sales Plan: Overview of Wintek.

Introduction of the PVC.

Marketing Objectives.

Marketing Researches.

Segmentation, Targeting and Positioning.

Marketing Mix 7 Ps ( Product, Price, Place, Promotion, Process, People and Physical evidence ).

International Marketing and Entering a New Markets.

Implantation Strategy and Budgets.

Evaluate and Control

Environmental Scanning

Global Economics Outlook:

Despite recent improvements in economic conditions and in market

sentiment, the global economy is still struggling to recover from the deep

financial crisis.

The Eurozone economy is expected to be flat this year, but risks are to

the downside.

Recent measures on banking supervision, greater fiscal integration and

accommodative monetary policy are the positive factors, though

progress is a concern.

The US economy is likely to see a stronger recovery following the partial

“fiscal cliff” agreement and the on going improvements in the labor

market.

Further fiscal contraction, debt ceiling and long term fiscal sustainability

are the main concerns.

There is a persistent divergence between weak performance in

advanced economies and firm performance in emerging economies.

Environmental ScanningSaudi Arabia Economy

Saudi Economic Outlook:

The Saudi economic growth is among the highest compared to G20

countries.

Positive growth outlook for 2013-14 is supported by (i) high government

spending, (ii) robust domestic consumption and (iii) supportive credit to

private sector.

High oil revenues levels will boost business and investor confidence, but

major risk to this scenario is a global growth meltdown that bring a

sustainable decline in oil prices.


Positive global demand for hydrocarbon products and elevated oil prices

will maintain a double digit currant account surplus this year.

Solid domestic performance is expected to keep imports and the invisible

account deficit elevated.

Oil revenues will also keep the fiscal balance strong despite increasing

spending:

Support to domestic demand and positive spillover to non-oil private

sector.

Housing, construction, transport, retail and financial sectors to benefit the

most.


Budget spending priorities are consistent with recent years


High capital spending remains psychologically important for the private

sector.

A record high investment spending in 2013 will maintain a solid and

sustainable growth in manufacturing, construction and transport sectors.

A capacity constraint is likely to limit the expansions of capital spending in

2013-14 compared to the previous two years.


Real GDP growth by sector

Three categories of sectors:

Construction and transport, the main beneficiaries of government investment spending, should be the fastest growing sectors in 2014.

Consumption oriented sectors expected to do well on favorable domestic demand, rising government consumption spending and recent labor market reform.

Export oriented sectors could be under pressure on the back of worsening global demand.


Real GDP growth by sector table:


Construction sector indicators:

Local demand for manufactured products, especially those used for

construction, such as cement is likely to maintain an upward trend.

According to Middle East Economic Digest, there are projects underway or

planned in the Kingdom worth $783 billion; virtually all of these involve

some element of construction.

New letter of credit opened for imports of building material followed the

capital spending upward trend.


The banking sector:

Domestic banks have comfortable liquidity position most of which driven

by consecutive years of expansionary government budgets.

This should help banks offset any material sudden liquidity pressures due

to regional and global uncertainties.

The incremental increase in deposits reached a record high last year most

of which were deposited at the central bank.


Domestic demand is rising:

Monthly data points to an upward trend in consumer spending, despite

seasonal trend.

Retail, telecom, and financial sectors will benefit from the recent

government initiatives particularly the ongoing labor market reform.

Consumer demand for real estate has pushed personal lending to a new

high.


Inflation cooled but not entirely

Inflation slowed to 4.5 percent in 2013 with the core rate falling at a faster

rate.

Some local inflationary pressure is likely to remain as a result of the high

level of consumer and government spending, rising bank lending and low

interest rates.

Domestic rental inflation, international food prices and weaker dollar will be

the main divers of inflation in 2014.


Conclusion

2012 was a difficult year for the global economy. US debt ceiling, fiscal sustainability in the US and the Euro crisis will be the focus of this year.

High government spending will be the main source of economic growth in the Kingdom. This spending is affordable, at the moment. Other economic growth divers include:

Solid domestic demand

Higher bank lending and low interest rates.

Oil prices will remain elevated, though both prices and production will slightly fall over the remainder of the year.

Strong Saudi story and uncertain global environment means Kingdom should be attractive to foreign investors.

Short-term risks are external; the global economy and the regional political situation. Structural problems with the labor force, rapidly growing energy consumption and role of government are long-term term concerns.


Saudi Arabia: Key data and forecasts

Constrictions & Building Sector Analysis


Kingdom of Saudi Arabia (KSA)

The residential construction and real estate market of Saudi Arabia

witnessed a phase of cyclical developments due to fluctuating oil prices

during 1975 and 2012. The market was marked by extreme undersupply of

residential units, especially in the low and middle income segment, as a

result of rapid population growth in both the local and expatriate

populations.

However, the residential construction market picked up pace post 2000

after the enactment of the Foreign Investment Act, which was enacted to

promote Foreign Direct Investment (FDI) in the sector. The act liberalized

the foreign investment laws in Saudi Arabia.

The Saudi Arabian General Investment Authority was created under the

act with a responsibility of licensing all new foreign investments across

Saudi Arabia. Later a new real estate law was enacted allowing legally-

resident non-Saudis to own real estate for their private residence, provided

they received a license from the government.


As a result of changes in regulations and increase in population, the region

witnessed huge surge in housing demand which led to a sharp increase in

property as well as land prices. From 2002 to 2005, the prices of house

units and land increased by around 13.7% and 16.5% per year

respectively. The market remained largely unfazed by the global economic

recession mainly due to pent-up demand of housing units from both local

as well as foreign investors.


The residential construction market of Saudi Arabia remained largely

immune to the downturn in the construction sector for a major part of 2012,

with a marked imbalance between demand and supply of residential units.

The region witnessed the start of several large and small residential

projects in the last two years. The commencement of a 500,000 affordable

housing unit project by Saudi Arabia in 2012 has also helped maintain the

upbeat mood in the market. However, there is further scope to provide

homes to nationals falling in the low and middle income groups. Only 35%

of Saudi nationals own a home and low and middle-income households

comprise approximately 80% of the current unmet housing demand.


Our long term outlook on residential real estate and construction markets

of Saudi Arabia point towards a positive future over the next five years on

the back of rising population and a booming economy (supported by stable

oil prices). IMF‟s estimates indicate that the GDP and population of Saudi

Arabia are expected to grow 4.2% and 2.1% respectively between 2011

and 2016.


Constructions Market SWOT Analysis KSA

• Saudi Arabia has the largest construction sector in the Middle

East. Alongside active government

spending, efforts are also being made to increase private

investment. Government-led activity

boosted by oil windfalls is driving demand in the construction

industry.

• The Ninth Development Plan for the Kingdom of Saudi Arabia

sets out plans to invest SAR 1,444bn

(US$385bn) in social and economic infrastructure between

2010 and 2014.

• The total value of contracts issued in the Kingdom's

construction sector grew by 50% year-on-year

in H212 (following a 140% y-o-y increase in awards during

2011).

The number of ongoing mega-projects means that many

multinational firms have a presence in the

country.

• Increasing private investment should provide

opportunities for large foreign contractors to increase

their involvement in the country.

• As other construction industries in the Gulf stagnate,

construction companies look to Saudi Arabia

for opportunities.

• Saudi Arabia remains a 'construction safe heaven' amid

both wider political and financial turmoil.

• The industry is heavily reliant on government contracts

rather than a free market driven by the

private sector. Furthermore, due to delays in government

payment (largely due to red-tape and

inefficient bureaucracy), government contracts can remain

unpaid for months.

• The country has a persistent unemployment problem.

According to the government, unemployment

among Saudi nationals reached 11.0% at the end of 2011.

• The country is facing a power crunch. However, significant

investment is being made to meet future

demand through the construction of numerous power plants.

• The Arab Spring, which created instability in numerous

countries in the Middle East and North Africa

region, catalyzed some discontent in Saudi Arabia. While this

was short-lived and quickly contained,

it remains a risk.

• The death of crown prince Sultan bin Abdul-Aziz Al Saud

raises questions over succession and could

be a potential source of instability.


• Saudi Arabia has the largest construction sector in the Middle East.

Alongside active government

spending, efforts are also being made to increase private investment.

Government-led activity boosted by oil windfalls is driving demand in

the construction industry.

• The Ninth Development Plan for the Kingdom of Saudi Arabia sets out

plans to invest SAR 1,444bn (US$385bn) in social and economic

infrastructure between 2010 and 2014.

• The total value of contracts issued in the Kingdom's construction

sector grew by 50% year-on-year

in H212 (following a 140% y-o-y increase in awards during 2011).


The number of ongoing mega-projects means that many multinational

firms have a presence in the

country.

• Increasing private investment should provide opportunities for large

foreign contractors to increase

their involvement in the country.

• As other construction industries in the Gulf stagnate, construction

companies look to Saudi Arabia

for opportunities.

• Saudi Arabia remains a 'construction safe heaven' amid both wider

political and financial turmoil.


• The industry is heavily reliant on government contracts rather than a

free market driven by the private sector. Furthermore, due to delays in

government payment (largely due to red-tape and inefficient

bureaucracy), government contracts can remain unpaid for months.

• The country has a persistent unemployment problem. According to the

government, unemployment among Saudi nationals reached 11.0% at

the end of 2011.

• The country is facing a power crunch. However, significant investment

is being made to meet future

demand through the construction of numerous power plants.


• The Arab Spring, which created instability in numerous countries in

the Middle East and North Africa region, catalyzed some discontent in

Saudi Arabia. While this was short-lived and quickly contained, it

remains a risk.

• The death of crown prince Sultan bin Abdul-Aziz Al Saud raises

questions over succession and could be a potential source of instability.

Jeddah

Jeddah had approximately 739,000 units of residential stock at the end of

Q3 2012. Jeddah‟s residential market is also marked by demand-supply

imbalance and nearly all additional supply till Q3 2012 has already been

sold. Most of the recent construction activity across the city was

concentrated in the upper-mid to high-end segments of the market.

Jeddah Development & Urban Regeneration Company (JDURC) is

currently providing affordable housing and redeveloping the Khuzam and

Ruwais area of Jeddah. However, the private developers are still

struggling to offer solutions that can absorb high land prices.


Demand-supply imbalance in the market has resulted in increase in prices

as well as rentals across Jeddah. Jeddah‟s residential market also

witnessed a strong demand for a major part of 2011, which led to an

increase in the average sale price of both villas as well as apartments. In

Q3 2011, average selling prices of villas and apartments was SAR4,000

and SAR2,800 per square meter respectively34. Jeddah also witnessed

an increase in rents in 2011, due to an under-supply of residential

compounds, particularly for expatriates. Developers have launched several

projects to encounter the problem of under-supply in Jeddah.

Rental yields of villas/duplexes across Jeddah declined from 9.1% in Q4

2010 to 8.8% in Q4 2011. Also, rental yields of apartments in Jeddah also

declined from 11.5% in Q4 2010 to 10.8 % in Q4 2011. The decline in the

rental yields across Jeddah was mainly due to an increase in prices of

residential units on the back of a sharp rise in land prices across Saudi

Arabia in the recent past.

In Jeddah, JLL projects an addition of around 78,000 residential units

between 2012 and 201536. We expect extreme shortage of residential

properties is likely to result in increase in both rentals as well as prices in

the short to medium term. In longer term also we maintain an optimistic

outlook of Jeddah residential properties market.

The recent statistical data indicate that the building and construction sector

has witnessed a remarkable development during the past five years,

whereas the added value of the sector reached in 2012 to more than 97

billion riyals, and the value of capital assets for the building and

construction sector amounted to more than SR190 billion in 2012

SWOT Analysis

1. Booming at Building sector

in KSA

2. No competition at PVC

windows

3. The only PVC producer in

KSA market

4. Increase company market

share

5. Export to the GCC market

1. Bad service

2. Deliver late

3. Bad Internal

communication between

the departments

4. Measurements mistakes

5. Bad reputation and word of

mouth

6. Unimplemented procedure

system

1. High quality PVC windows

2. PVC windows features

3. PVC advantages VS

Aluminum

4. Windek is Saudi Arabian

Company

5. There is no other company

manufacturing PVC in the

market

6. Wintek cover KSA with 6

branches

7. Wintek History and Projects

8. Wintek has all

manufacturing and

production departments

9. Techniqual skilled team

10.No out of stock

11.Different colors

12. Hard to copy PVC

windows system

13. No external fund

1. Chinese PVC Windows

2. New PVC company

open in the market

3. Losing market share

SWOT Analysis

1. High quality PVC windows

2. PVC windows features

3. PVC advantages VS Aluminum

4. Windek is Saudi Arabian Company

5. There is no other company manufacturing PVC in the market

6. Wintek cover KSA with 6 branches

7. Wintek History and Projects

8. Wintek has all manufacturing and production departments

9. Techniqual skilled team

10.No out of stock

11.Different colors

12. Hard to copy PVC windows system

13. No external fund

SWOT Analysis

1. Bad service

2. Deliver late

3. Bad Internal communication between the departments

4. Measurements mistakes

5. Bad reputation and word of mouth

6. Unimplemented procedure system

SWOT Analysis

1. Booming at Building sector in KSA

2. No competition at PVC windows

3. The only PVC producer in KSA market

4. Increase company market share

5. Export to the GCC market through a dealers

SWOT Analysis

1. Chinese PVC Windows

2. New PVC company open in the market

3. Losing market share

4. Aluminum

Defining Target

Market

Needs, Wants,

Demand

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Marketing Research

Marketing Mix

7Ps

Product

Variety

Quality

Design

Featurs

Brand

Packa

ging

Size

Servics

Warrany

Return

Price

Price List

Discouns

Allowance

s

Payment

Credit

Place

Channels

Coverage

Assortnt

Location

Inventory

Transpot

Promotion

Promotion

Advertsing

Sales Force

Public

relation

Direct

marketing

People

Competence

Reliabiltiy

Caring

Attitude

Goodwill

Process

Customer

focus

IT support

Experience

perflght

Inflight

postflight

Physical

Evidence

On

ground

In flight

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