Marketing Plan - Santosh Thakor

STRATEGIC MARKETING MANAGEMENT DR.RIAN BIESE-ZEE

MARKETING PLAN FOR THAISKY ENGINEERING

SUBMITTED TO: DR RIAN BIESE-ZEE

SUBMITTED BY: SANTOSH THAKOR

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MARKETING PLAN FOR

(Thaisky Engineering Group (Bangkok) Co., Ltd)

Table of Contents

1) Executive Summary 3

2) Company Description 4

3) Strategic Focus and Plan 43.1 Mission statement3.2 Goals3.3 Core Competency and Sustainable competitive

Advantage

4) Situation Analysis 6 4.1 SWOT Analysis4.2 Industry Analysis4.3 Competitors Analysis4.4 Company Analysis4.5 Customer Analysis

5) Product-Market Focus 95.1 Marketing and Product Objectives5.2 Target Markets5.3 Positioning

6) Marketing Programs 10

6.1 Product Strategy6.2 Price Strategy6.3 Promotion Strategy6.4 Distribution Strategy

7) Implementation Plan 13

8) Evaluation and Control 13

9) Appendices 14 Executive Summary

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Thaisky Engineering Co., Ltd. Is one of most companies which emphasizes on being professional in terms of servicing and distributing industrial valves and instruments. I have produced this marketing plan for development of company awareness and marketing of the high end products available from countries like France, Germany, England, US, Spain, Korea and Japan.

Currently, the company has ten innovative brands with many types of products like Gate valve, Globe Valve, Expansion Valve, Steam Traps, Check Valve, Knife Gate valves, Butterfly valves. We are the distributor of many world class brands like LESER, VELAN, ORBINOX, OVENTROP, MECA-INOX, ROTOTHERM, PURETORQ, KIM, PROTEGO, and KINETROL.

This paper will include the strategic focus of our valve distributing business and marketing plan of the company. It will also include situational analysis by analyzing your current strengths, weakness, opportunities and threats. In addition, we will also state the industry analysis, company analysis, customer and competitors’ analysis.

Product focus of the valves business is a very broad thing because it has many types of valves in many types of industry. Marketing of these valves are done by several catalogues and the online website that is available for online orders.

Finally, appropriate methods to evaluate the success of the marketing campaign of the world class brands. We have great numbers sales staff to implement on our plan and make this business successful and would give good returns. We have good and reliable suppliers who are ready to stock us at price and delivery time is quick.

Company Description

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The beginning of Thaisky Engineering’s success has started from January 24, 1997 by one of the engineer, who is experienced and expert in valve and steam system. The company was established by Mr. Wiroj Ittisomboon; an industrial engineer from King Mongkut’s Institute of Technology, Thonburi. We have run the business in terms of importing and distributing various types of valves and steam equipments from foreign countries with a registered capital of 30 million baht. It has net sales of 220 million baht per year.

We have been more creditable by receiving numerous orders from our customers in the whole year. We also have large number of contacts from world class industrial valves manufacturers which has shown our growth and trustworthiness to be the distributor of the world class valve suppliers.

At the present, numbers of employees are more than 70 people. It consists of 30 qualified staff with 13 inside sales and 25 outside sales with 8 highly qualified engineers. Thaisky have also set up the customer Service Department to enhance the efficiency in terms of interacting with the customers in order to provide information about our products and services, to respond to the customer’s needs and suggestions and comments so that we can develop our service system to be better and can fulfil customer’s demands.

We are also a first valve distributor company in Thailand who have established QA (Quality Assurance) department. All products in the warehouse are tested and have been controlled the quality by our team of engineers. Our warehouse consists of 350 million baht of stock with more than 30 million baht of equipments for testing and workshop facility.

Strategic Focus and Plan

Mission

Thaisky’s mission: “Total valve Package”Thaisky Engineering group (Bangkok) Co., Ltd has been the distributing leader in reasonable & quality valve with attractive prices in order that the customers can buy the premium products in the economical prices. We believe that “the best quality and the standard product” are the crucial concept in the new world of business. Our goal in the 21st century is to serve valves and control equipments as well as focus on the friendly environmental products which the company has continuously maintained the standardization and the ability to fulfil our customers’ requirement any time anywhere. At the same time, we intend to employ the concept “TOTAL VALVE PACKAGE” driving us to perform well in the global business so that the customers can order every valves and steam equipments only at “Thaisky”. The premium products, economical prices, several options of products and the impressive after sales services are the significant that make “Thaisky” the biggest valves shopping centre in Thailand. Furthermore, under this concept, it also illustrates the potentiality; the courage and the harmonization of our team to

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prove that the quality and performance job only come from the qualified sales staff and engineers.

Goals

Nonfinancial Goals

1) To gain good reputation and image for total valve package centre amongst our customer and the markets.

2) To enter the market in a big way and toppling many other valve suppliers

3) To be a “Total Valve Package” leader amongst the competitors means that valve is bought by customers but also their spare parts and other complementary equipments needed with our brand of valves.

4) To add a new product brand every 6 months and be the sole distributor of that certain brand name.

5) To be the first recognized company for brand distributor in Thailand.6) To provide good customer after sales service.

Financial Goals

1) To earn at least 40% profits of sales from the end users as much as trading.

2) To reach the goal of 220 million baht sales for year 2011 and 10% increase every year.

Core competency and sustainable competitive advantage

Thaisky’s core competency is the rapid development of unique solutions for the customers’ requirement in all bounds of valve technology. Thaisky has been the distributor of over 40 brand names which are worldwide known for their fine technology and intrinsic developments in the field of valves and control instruments. We are the number one choice for any problem, we have a quick solution for our customers provided by our trained sales people and engineering team. We are the valve specialist as we have been working in this field for almost 14 years with vast experience. We are able to provide a total valve package for the customer who believes in the technology of our company. We have a very reliable service team of experienced engineers and expert staff in both maintenance and product quality control in order to meet customer’s need.

To convert these core competencies into sustainable competitive advantage, the company makes an effort organize seminars in the company twice a month to ask for customer’s opinions about the product, quality management and the price aspects of the products. It also tries to understand and build solid relationships with the suppliers and distributors of various brands of valves and control instruments for the goodness and aromatic standards of the customers in today’s business world of valves.

Situation Analysis

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Current background of the Thaisky Engineering details up with the SWOT analysis (Strengths, Weakness, Opportunities and Threats)(figure 1) stating both internal factors and the external factors of the environment. SWOT analysis will detect the good details in industry, competitors, company and consumers.

SWOT Analysis

Figure 1 SWOT Analysis for Thaisky Engineering Co., Ltd.Internal factors Strengths Weakness Management Knowledge of all types of valves

and accessories and experienced managemement skills for optimal performance

Lacks management people who can really operate the business properly and in a systemmatic way.

Offerings Many kinds of high standards valves with good reasonable prices

Competitors have many low quality with low prices to give to the market

Marketing Good promotional tools used by marketing team to reach the market inaddition market knows the company through websites

Inexperienced marketing staff and logistics will make bad distribution

Personnel Well trained Engineers and salesforce

High turnover rate of salesforce

Finance Good financial business support from the WISCO group holding company; Sales growth rapid

Growth opportunities close due to warehouse stocks

Manufacturing High class brands have high standards of manufacturing; using suppliers manufacturing sites as reference

Huge competition due to manufacturing in China

External Factors

Opportunities Threats

Consumer/Social Rapid growth in industrial

developments in Rayong, Chonburi and many other provinces; Endusers segment has been growing significantly large with a desire of many world class brands.

High class brands is what consumer want but the price is very high for these brands so they might switch to low class brands from China

Competitiveness World class brands have now started manufacturing all types of valves in China with low cost;

Competitors can copy the brand that we export from abroad

Technological Warehouse tracking system to be installed as there are many products to choose from.

Competitors adopt new technologies very quick and valve technology changes fast

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Economic Industrial valve enduser for example big plants and company are expanding thoroughly

Increases the number of suppliers of valve and causing the competition to rise thus price going down

Legal/Regulatory Taxes for brands are low Govt. encouraging low class quality products from China and tax are low if the goods are coming from China

Some of the strengths that we have is the license agreements with world class brands to distribute their products around Thailand. There are many brands that have given us a license to distribute their products like LESER from Germany, ORBINOX from Spain and etc. Weakness adds up to small organizations due to cost and understanding the different market segments who can use our technology successfully. Opportunities can be to invest heavily in high pressure, high eccentric valves and high performance to be the best and first distributor in Thailand. Threat can be unsuccessful in choosing the right partners for a suppliers and would be a problem in long term.

Industry Analysis: Valves and Control Systems

There are vast numbers of valves distributors in Thailand compared to the use of valves in Thailand. The end-users are in large demand of these valves mainly from Europe, South Korea, Taiwan, and UK. Customers think that these valves have good quality and they are value for money. Control instruments are mainly from UK as the international standards are very high. Many of them already have their base as Rayong since this province has the largest valve users mainly from pulp & paper, petrochemicals, steam process, refineries, electrical generator companies and many other companies who require many types of valves. Thailand uses 300 million valves per year in it’s industry, without these valves the companies will stop working or producing anything. Many types of other industry rely heavily on the types of valves that we distribute in the market.

Competitors in the valve distributing industry

People flock up to be a distributor of the some brands names of the valves. There are hundreds of companies who have become distributors of the mother company who are manufacturing the valves in their manufacturing plants. There are many companies with the same brand names in the market for example; LESER safety valves have many distributors in Thailand. It is really unfair that 5 or 6 companies have been told to compete with each other for the order of end-users. The products are varied in different sizes and variations to see the requirements of the customers. Competition is fierce in the valve industry with many other people providing the same range of valves but in cheaper price and mainly giving more service option which should be affordable by the management. After-sales service is main aspects which gives them a chance to survive in the fierce world of valve distributors. In case of after sales service, you need to make a base at the origin of installation of

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valves as all of these valves are fitted in provinces like Khonkaen, Rayong, Kanchanburi, and Udon Thani.

Chinese valves have taken over our market of premium brands. We are specialized in have 10 most premium brands which are our main products in the catalogues. Chinese valves are low in quality but very cheap and affordable and people don’t see the value of money in the premium products. Our main objective is to make sure that customers understand the value for money.

Company Analysis

Thaisky Engineering has been trying to penetrate the markets in the eastern province of Rayong as we have not yet established a branch there. We are planning to introduce the 10 most premium brand names from Europe and Southeast Asia. We have a good team of engineers and sales person who have the guts to penetrate this market because they know the market very well and how will it react to our strategy.

Currently, we are 4th most preferred distributors in Thailand for having wide range of products and we are known for our on-time delivery schedule. Our companies have many reliable suppliers to meet the demands of the trader, contractors and end-users. We have good connectivity to the contractors who work closely with our teams to support us for technical difficulties and possible order closing as they have good reputation with the customers in far side of the distributing channels.

Customer Analysis

Thaisky Engineering has mainly three types of customers. They are traders, contractors and end-users or factories itself in which we can earn higher profit margin.

Traders are mainly based with Chinese valve markets; they are in need of cheap products to the factories because they have fewer investments. Contractors are very useful type of customer who has many connections with the factories. They bring us large amounts of orders which are mainly from end-users with many types of valves from gate, globe, safety, butterfly diaphragm and needle valves.

Existence of our organization is due to the contractors who have produced us the demand of valves in end-users markets for about 60% of sales are generated from end-user and having contractors to do the work for us. Connectivity of the contractors can be very useful for our business as they have profited our business in a huge deal.

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Product Market Focus

This part of the marketing plan focuses on the target markets, marketing and objectives of the products as well as the positioning of the company which is the image of the company in the target market’s mind.

Marketing and Product Objectives

Thaisky Engineering’s has full purpose is to grow rapidly by marketing their main 10 brands in the Thailand’s market. We have to earn revenues from these premium 10 brands to level the cost of the products itself.

Marketing of the 10 leading world class brands such as LESER - Safety valves, ORBINOX - Knife Gate Valves, KIM - Diaphragm valves, KINETROL - Damper Actuator, MECA-INOX - Ball valves, OVENTROP – Expansion valve, PROTEGO – Flame arrestor and Breathing valve, VELAN – Steam traps, PURETORQ – Rotary Actuators, and ROTOTHERM – control temp gauges.

New addition of brand names such as VALVOLE-HOFFMANN – control valves, DKM – several types of valves, VAG - valves and control instruments, DANFOSS – valves, DELTECH – butterfly valves and WATTS – valves.

Sales expectation of 300 million baht by the year 2012 and rapidly growing by 10% every year.

Takeover the market of Thailand by the year 2015 and become a first choice for the end-users, traders and contractors.

Target Markets

The main target market for these valves is the end-users (factories). They use them very often as their application that they use is very corrosive and defective material to the valves used in their industry. The factories would never change the valve’s spare parts as they know that it wouldn’t last longer than a brand new valve. Normally, a very corrosive factory will change its entire plant’s valves every 4 to 5 months. This is why we have premium products for the factory users as they would trust the quality of our valves.

Positioning

Positioning is an very important aspect of the organization as it would ensure our image in front of the target markets that we are selling to. It would make sure that the company you are dealing with is trusted and reliable. We position our organization as premium brand distributor with high price but good in quality and reliable product. We have created an image of a premium product seller unlike some companies have created an image of Chinese

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valves seller with low quality and low price. We have also taken the motto “value valves for money” means that how expensive you pay, they would surely last for many years.

Marketing Programs

The marketing mix of the Thaisky Engineering group is detailed below in the marketing program:

Product strategy

Firstly, we will give you the product line and main features of this product line are quality and service.

Product Line:

Many brands of valves:

General valves Ball valve Gate/Globe/Check valve Butterfly valve Strainer Foot valve Diaphragm valve Knife gate valve Steam Traps

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Safety Equipment:

Safety Relief valves Pressure reducing valve Vacuum relief valve Vacuum Breather valve Flame arrestor Rupture disc

Control and Automation

Control valve Piston valve Pneumatic actuator Electric Actuator Positioner Limit switch box Fail safe return valve

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Gauge/Instruments:

Pressure & Temperature Gauge Thermometer Electronic Instrument Thermo wells Recorder Controller

Quality Premium Product:

High quality products are also called premium product. These products are from Europe, US, South Korea, Taiwan, Japan and other Middle East countries. We have stock of each and every brand in this product line.

After sales service

Thai Sky N Engineering is committed to creating and developing quality work. So that customers can trust and rely on our company’s products over long term. The policy that "We are committed to the administration of thehighest customer satisfaction." We are ready to give your after sales service at any time you desire and at any where you desire. We mainly put a large effort to service our customer as we are “total satisfaction management.”(Appendices)

Price Strategy

Thaisky Engineering decides the price as 70% margin to the cost of the goods as we are also having special discounts for the traders, contractors and the end-users. The discounts are decided by our business development staff and the managing Director of the company. These branded products have extremely high prices and they are very high quality products.

Promotion Strategy

Some of the promotions that we have done are detailed below:

Seminars: We have a monthly seminar at our newly built office in rama 2 presenting a wide variety of products for sale and inviting the end-users to attend the seminars for the brief presentation of a brand name. Every 2 month we have a representative from the brand coming to our office and giving a brief lecture to the end users and contractors.

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Exhibitions: We also participate in exhibition that is help in BITEC every 6 months. It is a vital stage where we are really known to the target market. Our image is built from there on for the success of our company.

Trainings: We have every week training sessions for the installation of the valves and we invite big companies like SCG, PTT and others to train themselves in this training session. We have employed engineers to make training sessions with customer.

Sample Tryout: We also give away a sample for some valves for our customer to try out and if they are satisfied then we will get the order from them for more valves. It is our greatest pleasure to give customer for a trail use.

Distribution Strategy

We are the buyer of the products from supplier and we will be the distributors of these various brands around Thailand. We are the middleman in between the market and the foreign suppliers. The foreign suppliers are not ready to upscale the market so they have the middleman to do its job easier. We distribute it to many places in Thailand as we have some bases in some of the provinces of Thailand.

Implementation Plan

Introduce the top ten platinum products to the market across Thailand in many provinces where industrial companies are located. These industrial valve users are located far away as big companies are not allowed to open for environment reasons. Our sales force has the ability to figure out the markets in Thailand. They have been trained by our management and we are sure to expand thoroughly throughout Thailand.

The requirement of valves in industrial estate will never end as industrialists are always planning to make new companies. We have been looking out for any new recent development in the industrial industry. As for suppliers, we will always be looking for new technological advances to be with the trend in valve technology.

Evaluation and Control

Our sales staff is set with the monthly sales targets and they also have KPI (Key Performance Index), where each staff is measured for productivity and efficiency of the sales team. We also have monthly meetings to evaluate each of the staff for the performance and discussing about the recent developments from the world of valves. Every week, we also have a brief meeting for solving the customer’s problem and providing them with solutions for the problems with platinum products.

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We also keep in touch with Quality Assurance team to ensure quality present in our products so it can be a long term relationship with the customer. It is sure that our after sales services staff are also on monitor by training them successfully implementing the same training in the factories.

Appendices

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Documents

Marketing Plan - Santosh Thakor