Master CEREMICS & SANITARY FITTINGS Exports to Germany

Limitations
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 .

VIDEO .

. ‡ 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 3.gov/frd/cs/profiles/Germany.Economic 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 100.org/wiki/Demography_of_Germany) .

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.

Sign up to vote on this title
UsefulNot useful