Marketing

S &S Mediator Company: Marketing plan Sawsan AL-Maani S &S Mediator Company: Marketing plan ********************************** Sawsan AL-Maani S&S Limited Company Penetrate the Global Market Marketing Plan International Marketing Professor Janet Durgin December 10th, 2008 ********************************* 0 S &S Mediator Company: Marketing plan Sawsan AL-Maani Executive summery ****************** S&S Limited Company is a mediator company that is opportune for builder companies and construction companies that looking are to have business in the gulf area overseas in general, and in Qatar exclusively. Various reasons will attract construction and builder companies to Qatar:       Unstable economy status at this period of time in the US Extensive growth in Qatar The need for housing and other commercial facilities in Qatar Non-tax countries as in the Golf area release high prospects A dollar for a dollar profit in three months draws the attention Nevertheless; broadly open public relations between the US and Qatar Fundamentals make the project look successful: Arabic and English language spoken from in both divisions of the company, being an American citizen, trusted person who works for Qatar municipality, nevertheless; the political relation ties both countries America and Qatar. S&S Limited Company with LLP entity option (Limited liability partnership) formed of 50% shares to each partner correspondingly, consisting of two administrative centers; one in the US and another in Qatar. 1 S &S Mediator Company: Marketing plan Sawsan AL-Maani Table of contents **************** I. II. III. Property Location and Distention S&S Limited Company Mission Statement Marketing Strategies A) Establishing Strategic Business Units B) Assigning Resources to each SBU 4 5 6 6 6 7 8 8 8 9 9 9 11 12 13 13 14 15 2 IV. V. Promotion SWOT Analysis A) Internal environment a) Strengths b) Weaknesses B) External environment a) Threats b) Opportunities VI. VII. Financial Objectives Marketing and Customer Value A) The Value Creation and Delivery Sequence B) Holistic Marketing Orientation and Customer Value VIII. Financials S &S Mediator Company: Marketing plan Sawsan AL-Maani A) Financial Statement a) Fixed Expenses b) Variable Cost c) Breakeven Analysis B) Sales Forecast C) Expenses Forecast IX. X. Contingency Planning Preferences 15 17 17 17 18 20 21 22 3 S &S Mediator Company: Marketing plan Sawsan AL-Maani Property Location and Distention o Name: Qatar o Population: 863,100 o Capital City: Doha o Geographic Coordinates: Qatar is in both the northern and eastern hemispheres. It's positioned in the Middle East, a recognized geographical region of southwestern Asia. This country (peninsula) extends north from the Saudi Arabian landmass into the Persian Gulf, and is directly bordered only by Saudi Arabia. o Land Statistics: Coastline 350 miles o Land Areas: 4,416 sq miles o Landforms: Most of Qatar is a flat and rocky, sandy plain. Low hills punctuate the landscape, west and central, with massive sand dunes in the southeast. A few salt pans (shining white in the desert sun) line the western coastal areas, and within Qatar there are no perennial rivers or lakes. The Hawar islands serve as a loading terminal for oil from the western oil fields. 4 S &S Mediator Company: Marketing plan Sawsan AL-Maani S&S Limited Company Mission Statement: To contribute in building the world’s most luxurious hotels, malls, towers, and other commercial building in Qatar, with a team dedicated to outstanding service, surpassing customers’ expectations by providing higher standards connections between customers in Qatar and builders in the United States of America. With family running the two divisions of the company, one in the USA, and another one in Qatar, takes the business to a superior trusted work environment, both divisions fluently spoken Arabic and English languages, with more than twenty years realty experience in different countries raises the expectations and expands business security to the ultimate reach of peace of mind. Qatar is in its peak of urban civilization at this time, and because of the country’s small land area, vertical structural buildings are most demanded, and in need of all types of buildings, residential structures are on the top of these demands considering the high number of people coming into Qatar to build, teach, and serve in all aspects, nevertheless; these people will be needing appurtenant as in malls, markets, schools, universities, hotels, restaurants, and all other types of buildings a person can think of to make the area livable while maintaining the luxuriated opulence life style. 5 S &S Mediator Company: Marketing plan Sawsan AL-Maani Marketing Strategies *******************  Establishing Strategic Business Units: It is a significant organization segment division and affiliated companies that benefit from enhancing the companies opportunities and profit. Three essential units that forms this business project:  Construction Company  Financial sponsor (s)  Mediator division  Assigning resources to each strategic business units (SBU): This company will have two main components, one office in USA that should be searching and follow up with construction and building company that has the motivation to start business to build towers, commercial buildings, and malls in the golf area and specifically in Qatar, the other office which will be organizing and modifying intensive information, preparing and processing all related matters in regards to the land, governmental paper work, and all permits to ease the process and make it ready for the construction company.  Three intensive growth strategies: o Market-penetration strategy: the best way to achieve market penetration is to seek diversification and this is what this project all about, new location for the builders, new investment for the financial sponsors. 6 S &S Mediator Company: Marketing plan Sawsan AL-Maani o Market-development strategy: this process for developing the business by introducing new developer in the constructions and building field to new customers in the Golf Area, and also by bringing new market to the US construction and builders companies. o Product-development strategy: Customer satisfaction focused framework, providing alternatives for the construction companies, strengthen the innovation characteristic, overcome the weaknesses, hunting opportunities in the golf area in general, providing all efforts to make the perfect cycle between all three essential parts of the company’s and the its customers. Promotion According to Reuters news “NEW YORK (Reuters) - The owners of 370 Lexington Ave., a 26-story Class B Manhattan office building, have agreed to sell it for $155 million, a source with direct knowledge of the deal said on Tuesday, in another sign the frozen commercial real estate market is starting to thaw. The sale would not even have made the radar 18 months ago, when billion-dollar office building sales continued to bust records. But since then the credit market crunch, which made financing more expensive and difficult to obtain, brought sales in the booming market to a near standstill”. Continuing “The sale of the Class B building by Broadstreet Development to Sherwood Equities and JP Morgan Chase is expected to close later this summer and translates into about $505 per square foot, according to a person familiar with the deal”. (Jonas, 2008) 7 S &S Mediator Company: Marketing plan Sawsan AL-Maani While this happening in the USA, on the other side of the world -in Qatar- and according to Reuters Arabian Business news “Industries Qatar, the country's largest company by market value, almost doubled its third-quarter profit to 2.6 billion riyals ($714.7 million), compared to 1.35 billion in the year-earlier period. Net income in the nine months to Sept 30 was 7.2 billion riyals compared to 3.4 billion in the same period of last year, the company said in a statement on the Doha bourse website. Middle East Financial Brokerage had forecast third quarter net profit of 2.88 billion riyals. (Reuters, (Sambidge, 2008)) The building profit return can be obtained in three ways at three different profit rates: o When building's foundations are established, where the profit is 100: 100 o When building’s foundation and the bone construction are established, where the profit is 150: 100 o When the building is complete and ready to sell, where profit is 200: 100 Despite the fact that most mediator companies’ charges more than 8% of incoming and/or outgoing transactions S&S Limited Company will charge only 4.99 % of the final sale. Where incoming transactions are all units to be build in Qatar coming from the USA through S&S Limited Company, and outgoing transactions are all units to be sold in Qatar also through S&S Limited Company. 8 S &S Mediator Company: Marketing plan Sawsan AL-Maani S&S Limited Company will be facilitating all permits, license, and all other legitimizations needed for builders, constructions, and finance companies as well as help selecting the appropriate facilities to be build on the correct piece on land. In addition S&S Limited Company will be striving to provide top quality service, professional techniques, creative, innovative and idea-oriented as far as selling those facilities to realize the highest profit performance. S&S Limited Company will provide accurate and up-to-date information and pave the incoming and outgoing process way with the most advanced systems. SWOT Analysis ************** Internal Environment  Strengths: o Business idea: This is a unique and open opportunity for all constructional, building, and finance companies where is the profit is 200:100 in a maximum of 3 month’s period. o Company strategy: where two divisions of one family company work from a standpoint of integration to illustrate, design, and accomplish a divine work. 9 S &S Mediator Company: Marketing plan Sawsan AL-Maani o Brand: where Made IN USA makes all the different and completes the satisfactions, even if material, workers, or other institute component is not a US originated. o Opportunity to make an acquisition: charging only half percent “.5” from buyers and sellers will accumulate to five hundred thousand American dollars on a one million American dollar building contract. o Changing a supplier: a study of three countries will make the final decision considering supplies import in the projects, these three countries are Indonesia, China, and India. o Outsourcing a service, activity or resource: designers, engineers, or even simple building employment can be outsourced depending on the cost. Services can be forward to all customers in the Golf area and not limited to Qatar’s customers since there is an agreement between all Golf counties residents can buy and sell from each other. o An investment opportunity can be obtained from any other extensive growth areas and not limited to Qatar.  Weaknesses: o The two divisions of the S&S Limited Company will be dealing with each other mostly from a distance, one in the USA and the other in Qatar. No face to face working opportunity except for occasional meetings, losses the one-on-one negotiation and understanding and may cause a confusion issue. 10 S &S Mediator Company: Marketing plan Sawsan AL-Maani o Every meeting of both divisions, depending on the high-low season, airline tickets, and other expenses will be relevantly costly. External Environment  Threats: o Other mediator companies who are working or welling to work between US and the Golf area can be a true threat to this project company. If competitors have better charging rate that would lead to lose work, and/or if competitors have longer experience might cause the loss of work as well. o Negligence research finding unreliable building company providing non-satisfactory to its customers, builders should meet deadlines as well as providing quality structural building facilities to gain customer satisfaction. o The change of Constitution or laws in the involved countries. Higher rate in tax prices will cause higher charging rate. Any new difficult laws will create difficulties to meet customer satisfaction in the end of the line. o Currency rate exchange might cause the company to lose money to meet with contracts conditions. 11 S &S Mediator Company: Marketing plan Sawsan AL-Maani o Time difference. There are seven hours time difference between Qatar and the US and that means when it is daytime here in the US it is nighttime in Qatar, which might cause communication problem. o Variation in official weekends. The official weekend days in the US are Saturday and Sunday when they are Thursday Friday in Qatar, which leaves small time space of four days work and that can create problems in meeting deadlines with governmental, banking, or other official transactions.  Opportunities: o One hundred percent customer satisfaction always gives the ultimate opportunity to the project company o Trusted construction and financial group companies makes trustworthy between the company’s division and the costumers o High performance in all aspects of the project builds a great reputation which more likely to open bigger deal opportunities, and help expand the growth of the company o High performance and meeting the deadlines always stimulate customers’ interest. 12 S &S Mediator Company: Marketing plan Sawsan AL-Maani Financial Objectives ****************** As a startup business aiming for brand recognition to expand profitability, financial objectives have been set as follows: o Achieve revenue growth of 10% per year, considering the business starting at 0. o Increase net profit margins from 2% in the first year to 4% in the second year by decreasing expenses as the business knowledge grow with the business o Boost annual returns on invested capital from 0 to 10% by earning costumers’ satisfaction and business expansion o Establishing steady earnings during startup period by gathering all needed license and authorization papers and meet timelines and overcome barriers as time difference and assigned official weekend and other non-working holydays. o Increase charging rate from 4.99% to 6.49 %. By increasing the charging rate of 1.5% annually will give the business the opportunity to improve and reach for more advanced technology to achieve higher level business behavior. o Enhance annual budgeting by 20% evolve S&S Limited Company potentials and explicate stronger development. 13 S &S Mediator Company: Marketing plan Sawsan AL-Maani Marketing and Customer Value  The value creation and delivery sequence: Choosing the value: “New York, N.Y., September 15, 2008 – Turner Construction Company, the nation’s leading general builder, today announced that the Third Quarter 2008 Turner Building Cost Index, which projects domestic commercial building construction costs, has increased by 1.77 percent over the Second Quarter 2008 and 6.49 percent over the Third Quarter 2007”. (Eckhart, 2008) The constant price increase episode in the US for almost all constructions substance giving this project the ultimate value and the items can be bought from any other country that has a lower cost. 14 S &S Mediator Company: Marketing plan Sawsan AL-Maani  Holistic marketing orientation and customer value: Customer focus on quality and fast delivery Core competencies is structural building Collaborativ e network between US and Qatar Checking all other mediator companies between US and Qatar Awareness of the lows and highs Improve competency Any physical or virtual entity of beneficial availability to the project Business partners, a team work under one entity Value Creation that will drive the company’s growth Value Delivery that increases trust, confidence, and satisfaction to the customers Design and implement for customers’ satisfaction Maximizing the business benefit by working towards excellent customer relationship management Business domain is a key issue to project success Deploy internal resources in the most effective way Track and manage client and vendor information 15 S &S Mediator Company: Marketing plan Sawsan AL-Maani Financials ************ Financial reports are the financial controls. By analyzing the business financial reports, the company will be able to determine how well the business is doing and what is needed to do to improve its financial viability. Whether negotiating an acquisition, preparing for an Input-Process-Output (IPO), checking out the competition, or looking for a better understanding of the company's performance, the numbers tell the story. In Strategic Financial Analysis for Business Evaluation, it clears the connection between an organization's strategic drivers and its financial data, enabling management to gain an accurate, comprehensive view of the business. Giving the opportunity to mastering new tools and techniques, and will be better able to monitor and forecast performance, measure profitability, assess competitiveness, and analyze restructuring opportunities. Financial Statement This is the financial statement that measures the company's financial performance over a specific accounting period of the first month of the first year. Financial performance is assessed by giving a summary of how the business incurred its revenues and expenses due to operating activities. It also shows the net profit incurred over the specific accounting period. When understanding the income and expense components of the income statement, the company can appreciate what makes the company profitable. This income statement made for one hundred and twenty apartments building. 16 S &S Mediator Company: Marketing plan Sawsan AL-Maani S&S Limited Company - Income Statement Year ending 2008 2008 SALES Revenues (less) returns & allowances TOTAL SALES COST OF GOODS SOLD Beginning Inventory + Purchased - Ending Inventory = Cost of Goods Sold GROSS PROFIT EXPENSES Gross Wages Payroll Expenses Supplies Maintenance Advertising Accounting and Legal Rent Telephone Utilities Insurance Interest Bank Charges Depreciation Miscellaneous Expenses TOTAL EXPENSES 48,000 5,280 6,000 6,000 2,400 2,400 48,000 3,600 7,200 6,400 21,492 480 20,000 1,296 $178,548 16.00% 1.76% 2.00% 2.00% .80% .80% 16.00% 1.30% 2.40% 2.13% 7.16% 0.16% 6.67% 0.43% 59.52% 57,600 1,017,600 (115,200) 960,000 2,040,000 1.92% 33.92% -3.84% 32.00% 68.00% $3,050,000 50,000 3,000,000 100.00% 100.00% % Sales NET PROFIT $1,861,452 .62% 17 S &S Mediator Company: Marketing plan Sawsan AL-Maani  Fixed Expenses Telephone Utilities Insurance Gross Wages Total 3,600 7,200 6,400 48,000 65,200  Variable cost Supplies Advertising Accounting and Legal Depreciation Total 6,000 2,400 2,400 20,000 30,800 Breakeven Analysis Breakeven analysis is a high value tool that enables to Set targets for achieving profitability and positive cash flows. Break Even Point = Total Fixed Cost (TFC) / {(Unit Sale Price) – (Variable Cost) Unit Variable Cost = 30,800 / 120 = 257 = 65000 / 25000 – 257 = 2.63 Which is an equivalent to the dollar amount of: 25000 * 2.63 = 65,750 Unit Sale Price: 100,000 18 S &S Mediator Company: Marketing plan Sawsan AL-Maani  Diagram Illustration of Breakeven Point That means if three apartments are sold the project expenses will be covered. Sales Forecast Conducting a sales forecast will provide the business with an evaluation of past and current sales levels and periodic growth, and allow management to compare the company to industry norms. It will also help management establish the company’s policies so that easily can monitor company prices and operating costs to guarantee profits, and make management aware of minor problems before they become major problems. 19 S &S Mediator Company: Marketing plan Sawsan AL-Maani This is S&S Limited Company sales forecast for the first six months, with an increase in the summer season months as it appeared in previous studies of Qatar’s market. Month January February March April May June Forecast 3,000,000 3,000,000 3,000,000 3,150,000 3,300,000 3,300,000 Seasonal improvement 0% 0% 5% 10% 10% Expenses forecast Since the beginning of the business lifecycle needs more expenses than when it accomplishes some reputation advertising will be decreased gradually and periodically from month to month as shown in the expenses forecast table: Month January February March April May June Forecast 2,400 2,400 1,920 1920 1,728 1,555 Percentage reduction 0 20% 0 10% 10% 20 S &S Mediator Company: Marketing plan Sawsan AL-Maani Contingency Planning It is an embedded management process in case of disasters as in: Disaster Competitors have better charging rate that would lead to lose work Unreliable building company providing non-satisfactory to its customers Currency rate exchange Alternatives Reduce charging rate just bellow competitors rate Always having three additional builders in case of the failure of the existing one Charging in a dollar form cash is the first option for the company, if others a must then exchange to dollar as soon as cash is available 21 S &S Mediator Company: Marketing plan Sawsan AL-Maani Preferences ************ 1. (2006). Qatar. Retrieved November 25, 2008, from World Atlas Web site: http://www.worldatlas.com/webimage/countrys/asia/qa.htm 2. Jonas, Ilaina (Tue Jun 24, 2008 ). Manhattan office building sales signals buyers return. Retrieved November 26, 2008, from REUTERS Web site: http://www.reuters.com/article/gc06/idUSN2438219520080624 3. Andrew , Sambidge (Monday, 13 October 2008 ). Qatar's largest company posts big Q3 profit rise. Retrieved November 26, 2008, from Arabian Business Web site: http://www.arabianbusiness.com/534090-qatars-largest-company-triples-q3profit 4. (June 7–10, 2009). Strategic Financial Analysis for Business Evaluation. Retrieved December 10, 2008, from Executive Education Web site: http://www.exed.hbs.edu/programs/sfa/ 22 S &S Mediator Company: Marketing plan Sawsan AL-Maani Appendix ********** Some Pictures form S&S Limited Company web site to enhance the business potentials 23 S &S Mediator Company: Marketing plan Sawsan AL-Maani 24 S &S Mediator Company: Marketing plan Sawsan AL-Maani 25 S &S Mediator Company: Marketing plan Sawsan AL-Maani 26