Master CEREMICS & SANITARY FITTINGS Exports to Germany

Research Data of year 2002 to 2006 Secondary Data No Visit to Germany before Export Plan No Interviews, surveys, and direct contact with market participants ‡ No Specific Sanitary Fittings Data ‡ No Exact Idea of Competitors (Turkey, China) Prices ‡ German Language Issue ‡ ‡ ‡ ‡

About Master Ceramics & Sanitary Fittings

Company Introduction
‡ ‡ ‡ ‡ ‡ Established in 1982 with Sanitary fittings Ceramics Tiles manufacturing in 1995 Market leader in Pakistan Exports started in 2002 Latest Italian Technology

etc) prices in Germany ‡ International Standard Quality Products ‡ Low Cost of production .Competitive Strength ‡ Complete availability of raw materials ‡ Latest Italian Technology ‡ Low price of both products than competitors (Turkey. China.

Product Description .


. ‡ In Germany both ceramics and sanitary are at maturity stage.Product Life Cycle ‡ In Pakistan Tiles (floor and wall) and sanitary are at growth stage.

Product Development Methodology ‡ ‡ ‡ ‡ ‡ Italian Experts Proper R & D Dept. Innovative and stylish Designs Ideas from International Famous Designs Design Life 3-4 year .

Why Germany ? .

Price Stability Edge 5. Construction Industry +ve growth . Domestic production of ceramics tiles is not fulfilling demand of the customers in Germany 3.Why to Select Germany 1. 2nd largest consumption of ceramics tiles and sanitary & fittings in EU 2. Master Ceramics tiles and sanitary fittings are cheaper in price with compete able quality 4.

Economic Factors .

44 (19th) GDP growth 2.7% Import EUR 678.40 billion Exports EUR 840 billion http://lcweb2.loc.400 Inflation 1.963.7% 29% adding in GDP by industry and construction Salaried employees EUR factors ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Largest economy in the European Union GDP EUR 2. (2006) .140 billion ( 3rd) GDP per capita EUR 25.

Demographics .

org/wiki/Demography_of_Germany) .5 million Population growth Rate: 0.900 (source :http://en.1% Dependency ratio: 2.Demographics ‡ ‡ ‡ ‡ ‡ Population: 82.wikipedia.2 per h/h Urbanization 88% of the population Literacy rate 99 percent (ability of those 15 years old or older to read and write ) ‡ Pakistani 30.

Demographics .

000 (Source: http://en.3 m 230.000 90.wikipedia.000 3.Demographics Religion Christians Catholics Protestants Jews Hindus Muslims Buddhists Population 53 m 26 m 26 m .

Market Analysis .

(SOURCE: CBI MARKET SURVEY) . KLINGENBERG. ‡ Sanitary ware consumption is 909 million (euro). KERATEAM.German Market Analysis Eleven leading German manufacturers (2006) (AGROB BUCHTAL. ‡ Ceramics tile consumption is 846million(euro). 3rd largest in EU. 3rd largest in EU. etc) Market Consumption ‡ Sanitary ware & ceramics tile consumption is 1755 million (euro). JASBA . ENGERS. 2nd largest in EU.

2002 (SOURCE: CBI MARKET SURVEY) .German Market Analysis Largest EU importers of sanitary ware & ceramic tiles.

3 million m² 21 million m² (32% share in German market) 84.5 million m² 41.3 million m² (68% from domestic production) (SOURCE: CBI MARKET SURVEY) .8 million m² (16.7% German companies share) 62.German Market Analysis Ceramics Tiles Ceramics Tiles Sector Total Existing Usage Total Domestic Production Total Consumption from domestic production Total Imports Total Exports Volume 125.

11 million m² (SOURCE: euro stat) .98 million m² 2.German Market Analysis Ceramics Tiles Three strongest export nations to Germany Developed Countries Export to Germany France Austria Netherlands Volume 2.93 million m² 2.

German Market Analysis Share of Imports from Developing Countries (SOURCE: CBI MARKET SURVEY) .

4% ‡ 50+ years 22.German Market Analysis Construction Industry Breakdown by age % share of total ‡ < 30 years 21.1 % ‡ 30-49 years 56.25% (SOURCE: CBI MARKET SURVEY) .

German Market Analysis Construction: Value added and employment 58 733.1 (EUR million) (SOURCE: CBI MARKET SURVEY) .

3%. Increasing the number of house owners 50%. Demand of new houses is increasing. Renovation growth rate is increasing.German Market Analysis ‡ ‡ ‡ ‡ Construction growth rate 1. (SOURCE: euro stat) .

3% Usage gap= 1.63 million m² .8 million m² Growth rate = 1.German Market Analysis Gap Analysis Existing usage= 125.

‡ Effects of natural stone e. Anthracite. (marbal. Black. Brown. Shades of Taracotta.German Market Analysis Culture Trends in Fashion ‡ Design inspired by nature. (Source: study of the management consultancy BBE) . granite) ‡ Leading colors Beigs.g. ‡ High tech fashion colors with geometrical configuration.

German Market Analysis Culture Trends and design Scope for creativity: There is no limit to the personal creativity. Bathroom is gaining in importance: The market volume for the private bathroom equipment increased by 10.7 billion from 1995 to 2005.2 percent to more than 5. (Source: study of the management consultancy BBE) . Stretches from the classic to luxuries tiles and sanitary.

mercury and hexavalent chromium in packaging . cadmium.German Market Analysis Non tariff barriers Legislation ‡ Asbestos ‡ Chlorofluorocarbons & halons ‡ Concentrations of lead.

ISO 10545-2:1995 series etc ‡ Determination of dimensions and surface quality. ISO Standards ‡ 18 standards ‡ ISO 10545-1:1995 . . water absorption.German Market Analysis Non tariff barriers Requirement of Quality Standards European Standard EN87: 1991. etc. apparent porosity.

German Market Analysis Non tariff barriers Environmental Issues ‡ EU eco labels ‡ Dubo Marking and labeling ‡ CE mark Packing ‡ Standard size of pallets .

German Market Analysis Tariff barriers Ceramics Tiles = 0% Sanitary Fittings = 0% .

Marketing Plan .

000) . Munich (1. Hamburg (1.4 million inhabitants. Frankfurt/Main (655. Cologne (1.2m).7m).Marketing Plan Marketing Segmentation Basis ‡ Geographical Segmentation ‡ Largest cities Berlin 3.0m).

Professional Market ± ± ± Non residential market Residential market Renovation(both resi and non-resi) Private Market ± Do it your self (DIY) ± Bathroom Boutiques Washroom displays at outlets e.Market Segmentation The German market of ceramics and sanitary ware divided into two segments. Al Raheem traders .g.

manufacturers or trade associations ‡ Presentation. and services (e.Target Market & Distribution Channel Do it your self (DIY) markets ‡ Less emphasis on (national) quality standards ‡ Generally lower prices to consumers ‡ Increasing importance in several EU markets especially in Germany ‡ Can be targeted through importers. help desk. etc) . advertising. after sales. manuals. distribution. logistics.g.

Distribution channel .

Pricing Objectives ± Survival ± Image Building Methodology ± Cost Oriented ± FOB and CIF (by sea) .

Pricing Ceramics Tiles ‡ CIF Price 6 euro/ m² (avg) ‡ Profit Margin = About 70% ‡ Price Varies size to sizes & color to color ‡ 300% less price than German Manufacturers .

.Pricing Sanitary Fittings ‡ CIF price 200 euro/set ‡ Profit Margin = About 50% ‡ It changes with respect to categories of finishes.

Advertising and Promotion ‡ International Exhibitions. . ‡ Direct contact with traders. importers and manufacturer ‡ Via Website ‡ Arrange trips to Pakistan for potential buyers.

References ‡ Mr. Adnan Meer (Manager Marketing Master tiles and sanitary) ‡ Mr. Sabdulla) . Hafiz Attiq ur Rehman (Manager. Shahbaz (Manager export dpt Master tiles and sanitary) ‡ Mr. Amjad (Manager Sales Master tiles and sanitary) ‡ Mr.

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