December

GREEN BRICK MANUFACTURERS- MARKETING PLAN

10, 2011

Contents

1. EXECUTIVE SUMMARY.........................................................................................................................1
2. BUSINESS OVERVIEW...........................................................................................................................2
3. SITUATION ANALYSIS...........................................................................................................................3
I. CUSTOMERS.................................................................................................................................3
II. COMPETITIVE ANALYSIS...............................................................................................................4
 SWOT Analysis.............................................................................................................................5
 Competitive Forces......................................................................................................................7
III. COMPANY....................................................................................................................................9
 Mission:.......................................................................................................................................9
 Core Values:.................................................................................................................................9
IV. CONTEXT....................................................................................................................................10
4. MARKET INFORMATION (OPPORTUNITY AND ISSUES)......................................................................11
5. OBJECTIVES........................................................................................................................................12
6. MARKETING STRATEGY......................................................................................................................12
7. TARGET MARKET...............................................................................................................................13
8. POSITIONING.....................................................................................................................................13
9. MARKETING MIX................................................................................................................................13
I. PRODUCT...................................................................................................................................13
II. PRICING......................................................................................................................................14
III. PLACEMENT (DISTRIBUTION).....................................................................................................14
IV. PROMOTION..............................................................................................................................14
 ADVERTISEMENT.......................................................................................................................14
 SALES PROMTION......................................................................................................................15
 PUBLIC AWARENESS AND PUBLICITY.........................................................................................15
 EVENTS......................................................................................................................................16
 WEBSITE.....................................................................................................................................16

KUBS | Marketing Management

 December
GREEN BRICK MANUFACTURERS- MARKETING PLAN
10, 2011

 WORD OF MOUTH MARKETING.................................................................................................16

 PERSONAL SELLING....................................................................................................................16
10. OPERATIONS......................................................................................................................................17
I. LOCATION OF OUR FACILITY......................................................................................................17
 ADVANTAGES.............................................................................................................................17
II. OUTSOURCING...........................................................................................................................17
III. PROCESS....................................................................................................................................18
11. REVIEW AND CONTROL.....................................................................................................................19
12. MARKET ORGANIZATION...................................................................................................................20
13. ACTION PLAN.....................................................................................................................................20
14. BUDGET.............................................................................................................................................21
15. CONTINGENCY PLAN..........................................................................................................................22
16. SUPPORTING DOCUMENTATION
17. FINANCIAL SEGMENT............................................................................................................................I
I. PROPOSAL.....................................................................................................................................I
II. FINANCING PLAN..........................................................................................................................I
18. FINANCIAL FORECAST..........................................................................................................................II
I. INCOME STATEMENT...................................................................................................................II
II. BALANCE SHEET..........................................................................................................................III

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1. EXECUTIVE SUMMARY

Green Brick Manufacturers is a hypothetical startup with a capital of Rs 7,300,000. The business
produces bricks with a slightly different composition but makes a bigger impact on cost of
manufacturing and utilizing industrial waste. These bricks use the usual cement, sand and water
mixture with the compliment of incinerated (burnt) industrial waste, which reduces the usage
of cement by more than 25% but still making these bricks more durable. This means it provides
three major benefits, reduction of cost by as much as Rs 3 per brick, more durability and
utilization of industrial waste for which there is no viable solution in Karachi.

The idea of business is to gain the advantage of cost reducing innovation. This idea is a product
of highly talented team of researcher of Federal Urdu University, one of the researchers
“Muhammad Uzair Khan” is our partner who will be facilitating in further development as well.
This idea is recently highlighted in Turkey by the help of Higher Education Commission of
Pakistan, which provided the facility of visa and travel to represent this innovative idea which
can be beneficial for the environment as well.

We are starting with standard size bricks but plan to introduce customize option to our
customers as well. The place for this facility will be 4 km from Pak Colony near Ibrahim Ali Bhai
School which is near to Asia’s largest marble market. The waste of marble industry is also
utilized in our product.

We hope for this idea to succeed in short and long term as it provides benefits to all from
constructors to society.

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2. BUSINESS OVERVIEW
“Green Brick Manufacturers” is a partnership business mainly concerned with manufacturing low-cost
and environment-friendly bricks. This business is an effort of six partners. Five of the partners are
MUHAMMAD WAQAS, SYED MUHAMMAD ZEESHAN FAHEEM, MUHAMMAD SUFYAN KHAN, ADNAN
AHMED KHAN, MOHAMMED ABDULLAHI AHMED; whereas, the sixth partner – Dr Muhammad Uzair
Khan, is the brother of our partner Muhammad Sufyan. The five partners (excluding Dr Uzair), have
equal share in the total startup capital of Rs 7,300,000. Dr Uzair has contributed his research work and
will be with us for quality and control, and other research and development related matters.

Dr Uzair came up with the idea of manufacturing bricks using industrial waste as one of the raw
materials during his research work. Fortunately, this idea carries great potential with it and it is this idea
on which our business is based. Findings not only show that it is possible but also that this will make
possible manufacturing of more reliable and durable bricks than those available in the market.
Moreover, the industrial waste needed for manufacturing these bricks is regularly generated by
industries and is abundantly available. Tons of industrial waste is already there in the warehouses of the
industries. As there is no viable solution for disposal of this waste yet, they are compelled to keep the
waste in their warehouses, which eventually increases their costs.

The idea makes our business bi-directional. We are not only offering a better product, but also
contributing to the effective, efficient and much more productive utilization of industrial waste. The
bricks are made from ash obtained from incinerated (burnt) industrial waste. The mixture of incinerated
ash, cement and sand is combined with water to obtain the material to be used for manufacturing. Our
bricks are cheaper than the traditional bricks, use up to 25% less cement and convert industrial waste
into raw material. Hence, our bricks accompany great competitive edge. Moreover, the demand of
bricks is not seasonal in the city, bricks remain regularly in demand. Hence, our operations will be on
daily basis. Our business will hardly face any seasonal fluctuations.

Our factory is located 4 km from Pak Colony near Ibrahim Ali Bhai School. Moreover, we are located
near Asia’s largest marble market, which lends another big advantage to our business. We will be
delivering our product to the customers from here. At the start of our business, we will have
approximately 6 regular employees in our firm. Other employees will be paid on monthly and unskilled
labor on daily basis and the distributors (transporters) will be hired on contract. Initially, two standard
sizes of bricks will be offered i.e. 5X8X12 inch brick and 3x8x12 inch brick. However, we also intend to
offer bricks of various other sizes and customized brick option later. Primarily, we intend to focus on
business-to-business transactions, and will offer our services to commercial, industrial and
governmental customers. Bulk sales and long term supply agreements will be our specialty that will
separate us from local small-scale manufacturer. Major construction projects will remain our
preference. However, we will also involve in business-to-customer transactions. Initially, our services will
remain within Karachi. But we will look forward to the feasible opportunities of entering not only other
cities of Pakistan, but also the international market.

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 Our business’s main objective is to earn through manufacturing environmentally friendly products
(currently bricks). Our business will remain in the pursuit of transforming waste into useful products.
Bringing innovation in the construction industry lies at the heart of our business. We aim at continuously
seeking co-ordination of concerned organizations and institutes. Through mutually profitable
relationships as partners, etc. we intend to involve more and more parties in our business. We will be
looking to get our product tested at the international level, which will serve as an important stepping
stone in gaining international recognition. This will pave the way for us to get involved in international
projects and can help us in making our business multinational.

Our business strategy will be to initially penetrate the local market through our unique product and
capture a large market share. We will invest heavily in research and development activities side by side,
especially to introduce a wide range of products. We will make customizable products one of our
specializations. Expansion will remain the core element of our strategy. Not only do we intend to expand
our business from a city-wide business to a country-wide business, but also to enter the international
business world depending upon the opportunity.

Our researcher and partner Muhammad Uzair Khan has already talked to these industries’
representatives and they have assured of their full support. They are also interested in investing in the
plant to be used by us for incinerating the industrial waste to manufacture bricks. Besides all this, all
financial projections for the “Green Brick Manufacturers” have been very positive reflecting the
imminent success of our business.

3. SITUATION ANALYSIS

The situation of Green Brick Manufacturers has been analyzed using the 4C framework. 4C stands for
customer, competitor (competitive analysis), company (business) and context.

I. CUSTOMERS

Karachi is the business and industrial hub of Pakistan. The city contributes a huge share in the total
earnings of our country. Being situated in the heart of Pakistan is one of the biggest advantages that our
firm has. There is a huge pool of customers demanding bricks for construction. Construction-related
projects are a dime a dozen in Karachi. Almost all type of construction takes place here from small-scale
to large-scale and almost every construction project requires the supply of bricks. Such projects not only
include the construction on industrial sites, but also the construction of apartments, bungalows, shops,
malls, buildings, commercial areas, housing schemes, educational institutes, etc. Hence, there is a huge
demand from the customers belonging to industrial, commercial, residential and other areas.

Within Pakistan there is a great demand for bricks as construction itself is a necessary part of any
economy. There are construction projects in other areas of Pakistan where the government, contractors,

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 builders, real estate agencies, industrialists, etc require bricks in great quantities. However, going
outside Karachi will not be our prime focus. We may consider it later when planning our expansion.

Our product will remain a distinguished offering in the international market too. This reflects a great
potential for our product’s demand abroad. The benefit of being environment-friendly will lure
thousands of eyeballs to our product. There is a great probability of industrially developed nations to
offer us a big opportunity of integrating with their industries to cut the cost and protect the
environment. However, as moving abroad requires mammoth financial support we will look for NGOs
and other international agencies to support us. International market is not our prime target now. We
intend to grow domestically first and then, if a feasible opportunity arises, we will decide whether or not
to enter the international business world.

Contractors and builders i.e. business customers will pervade our target market. The contractors can be
of all types requiring bricks for construction.

II. COMPETITIVE ANALYSIS

In the realm of bricks manufacturing, the manufacturing methods of the firms are almost the same,
traditional and backward. Our unique method of using incinerated ash in brick manufacturing will give
us tremendous competitive edge against competitors. Our method reduces manufacturing cost, making
it possible for us to sell bricks Rs 3 less than the prevailing market price. Our bricks will also be more
durable than those manufactured by our competitors. Moreover, tons of idle industrial waste will be
brought into utilization, which lends another edge resulting in environmental protection. Our product
will beat the competitors’ price and quality; hence, there is a great probability that our product will
quickly and easily penetrate the market making us the market leader.

Traditional Manufacturers Green Brick Manufacturers

* Traditionally manufactured bricks * Bricks made up of sand, water, cement
Product made of cement, sand and water and incinerated ash
Pricing * Following the prevalent price (go with * Low prices due to low cost of
Strategy the flow) production

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 * Area-specific (seldom deliver to
Distribution distant locations)
* City-wide
* Mainly through personal selling and
Promotion * Almost non-existent
direct marketing
* Environment-friendly product
* More durable product
* Low-priced product
* Industries’ support
* Already established and widespread * Every unit of product removes every
Strengths firms unit of waste from the environment
* Innovation-oriented
* Lab-tested product
* Advantage of being located in Asia’s
biggest marble market
* Backward manufacturing methods
* Comparatively less durable product
* Resistant to change
* Threat from pressure groups
* Almost no innovation
Weaknesses * Product not linked with
* High chances of opposition from
competitors (triggering rivalry)
environment’s protection
* Comparatively high-priced product
* Comparatively low-quality product

• SWOT Analysis
The SWOT analysis of our business is presented below. “S” stands for Strengths, “W” for Weaknesses,
“O” for Opportunities and “T” stands for Threats.
• Strengths
 Our bricks’ price on average is Rs 2 to Rs 3 less than what competitors’ offer, due to the
usage of incinerated waste that reduces cement usage up to 25% in manufacturing.
 Our bricks are more durable than those available in the market.
 Our bricks are less water absorbent, which will give extra protection from dampness
during rainy seasons.
 Our product – bricks, are environment friendly as they are formed with industrial waste.
Every brick formed is every unit of earth saved from being polluted.
 No potential aspect has been identified so far that makes our product inferior to those
available in the market.

• Weaknesses
 Our product and eventually our success depend solely on industrial waste’s supply. If
the supply of the waste is stopped due to any reason, we will not be able to manufacture such
bricks.

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  There are cartels and pressure groups in the market which support certain business
groups (our competitors). If they turn against us, we cannot do much to prevent them from
interfering in our business.
 We do not have an up-to-date state-of-the-art research and development department.
It can be difficult for us to reply to any change in the market resulting from the introduction of
substitutes, etc.
 Being located in Karachi – in fact in Pakistan is our weakness in the way that there is
frequent political disturbance here.
 We do not have huge investment portfolio, any big problem can question our existence.

• Opportunities
 Our unique product opens the vistas of opportunities for us. There is no other such
product in the market, so there is potential chance that we could easily capture more and more
markets.
 The availability of tons of industrial waste and its continuous production offers us the
opportunity to set up this business and continue it.
 We are located in Karachi, which is the heart of our country. Availability of well-built
infrastructure will facilitate us in many operations.

• Threats
 For threats, please read Competitive Forces.

• Competitive Forces

Michael Porter’s five-force model is being used to analyze our business’s situation. The model is
presented below:

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 Potential entrants
(Threat of mobility)

Suppliers Industry competitors (Segment rivalry)

(Supplier power)

Substitutes
(Threat of substitutes)

Threats posed by these forces in our situation:

• Threat of intense segment rivalry

With the introduction of our product in the market, initially, we will find no competitors except those
manufacturing traditional bricks. It will be easy for us to start capturing the market and gain a larger
portion of market share. The big contractors of bricks, who have invested their big investments in brick
manufacturing or the same projects as we intend to target, there can be a fierce rivalry. Also, our
competitors might come up with the same offering as ours or a similar one which can then stimulate
intense competition. This intense segment rivalry can prove fatal for us as we will have to keep pooling
in resources to tackle them. With our costs sky-rocketing it might become difficult for us to continue.

• Threat of new entrants

Another threat we might face is the entry of new competitors. And it is probable that we will face it. This
business does not pose any barriers legally or financially. Machinery is available, does not require very
skilled labor, raw material is easily available. There are many very rich parties and business groups who
can easily get into this business seeing its success. They might form cartels and use pressure groups to
throw us out of business. Also with the entry of new entrants into the market the market environment
will become very competitive, which can harm our smooth running business.

• Threat of substitute products

Introduction of our product will bring a new dimension in brick manufacturing following which our
competitors will definitely look for bringing substitute for this innovation, like trying new combinations.

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 Due to advancement in technology and plenty of resources it can be possible for the foreign institutes to
introduce such ideas or products which could work as substitutes to our innovation. The substitute
products, if introduced, can prove threatening for our business as it is difficult for us to afford the
continuous research work to match their scale.

• Threat of buyers’ growing bargaining power

Initially, it is not expected that buyers’ bargaining power will grow as only we in the market will be
offering such bricks. We might be price setting firm where we will be in the position to set our own
prices and to easily beat our competitors’ price. Customers will surely buy our cheaper and more
durable product in this case. But with the passage of time it is quite possible that the competitors will
seek a response to our product in the form of a substitute or a similar product. They might also use a
similar manufacturing technique, which will increase the options available to our customers. If so, the
bargaining power of the customers can increase putting pressure on our business. There might be other
unexpected factors too which might raise customer bargaining power.

• Threat of suppliers’ growing bargaining power

Industries producing tons of industrial waste are our suppliers on which our entire business depends.
And they will be supplying us industrial waste mainly for the purpose of the disposal. Initially we do not
expect their bargaining power to grow because in a way we are relieving them from the burden of waste
management. Yet, if a way to dispose of this industrial waste is introduced, it is quite probable that the
industrialists will switch to that method. In this way, their bargaining power can increase too much and
it will become a great challenge for us to convince them to keep supplying the waste to us. If they do not
agree to continue their supply to our business, we will lose raw material supply and eventually we might
disappear from the market. The other possibilities which can increase suppliers’ bargaining power
include introduction of substitutes, introduction of even lower cost consuming manufacturing method
that will beat our prices, adoption of similar manufacturing method as ours, etc.

III. COMPANY

“ Green Bricks Manufacturers”

• Mission:

We are a business entity

We use the industrial waste in innovative ways and form practical reliable products.

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 To research, create and promote solutions that are valuable to customers, which are high in quality,
environmentally safe and long lived.

• Core Values:
Our core values are:

I. Social responsibility and commitment

We do Business for betterment
II. Continuous improvement
Finding more effective solutions
III. Creativity and innovation
Finding novel ways to use the industrial waste
IV. Human resource development
People are the most valuable asset in our business

Green Brick Manufacturers is a partnership business that consists of six partners. The five partners are
friends; i.e. Muhammad Waqas, Syed Muhammad Zeeshan Faheem, Muhammad Sufyan Khan,
Adnan Ahmed Khan and Mohammed Abdullahi Ahmed. The sixth partner is Dr Muhammad Uzair
Khan. He is the brother of our Partner Muhammad Sufyan. Dr Uzair brought this idea during his research
work, which has been transformed from a mere idea into “Green Brick Manufacturers” by our collective
efforts. Startup capital of Rs 7,300,000 will be raised by the five partners (friends) through equal
contributions of Rs 1, 460,000 each. The sixth partner – Dr Uzair, will include his research work and will
deal with the quality control related matters.

Green Brick Manufacturers is mainly concerned with manufacturing low-cost and environment-friendly
bricks. Our factory is located 4 km from Pak Colony near Ibrahim Ali Bhai School and Asia’s largest
marble market.

Initially, our business will focus on city-wide customers and operations. However, with the passage of
time, we also plan to expand if feasible opportunity comes up in the future. We will also look forward to
entering the international market if the situation permits.

IV. CONTEXT

The construction industry of Pakistan bears immense importance for the stability of the economy; it
uses about 9% of the total labor force of Pakistan. The manufacturing of bricks is directly linked with the
prosperity of the local construction industry. Due to less mechanization, our construction industry is
more labor intensive. This is why the construction industry is labeled backward very often. The non-use
of latest technology, old ways of management, outdated procedures, etc. are some of the main factors

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contributing towards the backwardness. Same is the case in brick manufacturing. The traditional
mindset of the manufacturers, adapting to change is hardly found. Even the concept of research is
almost completely absent. Long working hours combining with underpaid jobs remain the grievances of
the workers. Moreover, completion of the construction projects usually runs over the estimated time
and cost.

The above overview clearly depicts the backwardness of Pakistan’s construction industry and brick
manufacturing as compared to the world where developed countries remain involved in research and
development process. The developed countries’ bricks and other construction materials are found in
great varieties and are far more excellent in their respective areas. The brick manufacturing process in
Pakistan resembles that of the underdeveloped countries in South Asia region. It specially bears a close
resemblance with the backward brick manufacturing process found in Bangladesh and in parts of India.
The variety of bricks include traditional bricks made by combining sand, cement and water, fired bricks,
fired clay bricks, fired clay bricks (high alumina), etc. Handmade and machine-manufactured, both types
of bricks are found.

4. MARKET INFORMATION (OPPORTUNITY AND ISSUES)

Brick manufacturing internationally has gained tremendous importance, so much so that it has itself
taken the form of an industry in many countries and is worth in billions. For example, our neighbor India
alone has the brick manufacturing industry of worth US $140 billion annually. In the developed countries
there has been a consistent research work in brick manufacturing field leading to many advances. Yet
our method remains unique of its kind; thereby, opening international opportunities for us. However, in
many parts of the world the brick manufacturing methods remain crude and outdated – as in Pakistan.

According to the Annual Economic Review of State Bank of Pakistan for 2008-2009, the share of
construction industry in GDP growth rate was 2.4 percent. The brick manufacturing methods in Pakistan
are backward and out-dated, and research in this context is almost absent. The traditional old methods,
including the method of mixing sand with cement and water to manufacture bricks, are prevalent. With
the passage of time some advancement has taken place and brick manufacturing has begun to be
carried out through machines too. Both hand-made and machine-made bricks can be found in the
market. Moreover, something very positive in the move toward advancement is that many brick
manufacturers have come online too. They receive the orders from their customers through the internet
and transport the bricks to the requested location, after which the payment is received. However, there
is a plenty of room for more advancement in the prevalent brick manufacturing processes. Despite the
backwardness brick manufacturing remains the backbone of Pakistan’s construction industry.

In the realm of bricks manufacturing, the manufacturing methods of the firms are almost the same,
traditional and backward. Our unique method of using incinerated ash in brick manufacturing will give

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us tremendous competitive edge against competitors. Our method reduces manufacturing cost, making
it possible for us to sell bricks at about Rs2 to Rs3 less than the prevailing market price. Our bricks will
also be far more durable than those manufactured by our competitors. Moreover, tons of idle industrial
waste will be brought into utilization, which lends another edge resulting in environmental protection.
Our product will beat the competitors’ price and quality; hence, there is a great probability that our
product will quickly and easily penetrate the market making us the market leader.

5. OBJECTIVES

The Key objectives for Green Brick Manufacturers are:

1. To be recognized as safe and durable brick manufacturers throughout the regional

market in the first two years.
2. To achieve the sales target of 69,000 bricks in first year of operation and 145,000 bricks
in 2013 (second year of operation).

Break even analysis

Year 2013( 2nd Year of operation)
Selling price 8
Variable cost 3.8
Contribution margin 4.19
Fixed expenses 550400
Breakeven point in units 131,055

3. To exceed the breakeven point of 131,055 Bricks before the end of the 2 nd quarter of
second year.
4. To become profitable to minimum level of Rs 28,000 in second year.
5. To gain the support of international environmental protection agencies in research and
further product development.
6. To gain the government contractors of large project with Karachi and Hyderabad.
7. To become the first priority of brick purchasers who want bricks for construction on
large scale.

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 6. MARKETING STRATEGY

Our focus will be to cover the aspects the local manufacturers often ignore. Long term agreements and
just in time partners of construction projects. Also research to improve the block strength and letting the
customers know what we are doing to improve our product.

7. TARGET MARKET

Initially contractors and builders i.e. business customers will pervade our target market. The
contractors can be of all types requiring bricks for construction. However, with the passage of time we
also intend to penetrate the consumer market. Hence, looking forward to carrying out both business-to-
business and business-to-customer transactions simultaneously. Yet, our prime focus will remain on
business-to-business transactions.

8. POSITIONING

Green Brick Manufacturers will establish itself as a cost saving, environment friendly, durable and
reliable supplier of raw material to construction contractors.

9. MARKETING MIX

I. PRODUCT

Our firm offers bricks as a product to customers. The bricks are made of a conventional material with
addition of incinerated ash (a complement). The combination results in 25% less cement usage and
significantly improves durability of the bricks as compared to traditionally prevalent bricks. The
incinerated ash is obtained from industrial waste which is easily and abundantly available, textiles,
chemical and marble industry waste is to be utilized. Asia’s largest marble market is just a few kilometer
from the sites. The waste is in the form of sludge, which is dried out and burnt to obtain the incinerated
ash. The mixture of incinerated ash, cement and sand is combined with water to obtain the material to
be used for manufacturing. The material’s composition is as follows:

Material Composition

Cement 8%

Ash(burnt industrial 3%

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 waste)

Sand 89%

We will initially offer standard blocks of 3X 8 X 12 inch and 5X 8 X 12 inch. However, when requested, it
can be altered according to the customer requirements. The quality of our bricks and their durability is
much more than our competitors’ making our product a low-priced good-quality distinct offering. We
will look forward to get our product certified by international agencies.

V. PRICING

The price of our bricks will be Rs7 for 3 X 8 X 12 inch blocks and for 5 X 8 X 12 inch blocks it will be Rs10,
which is around Rs 2 to Rs 3 less than the price of bricks in the local market. Hence, our price will give us
the competitive edge against the competitors and will greatly help in penetrating the market with
tremendous growth potential. Moreover, the quality of our bricks and their durability will be much more
than the competitors’, making our product a low-priced good-quality distinct offering.

Other than the regular price, we are offering discounts to our customers in the form of different
packages. Like “early-order discounts”, “early-payment discounts” and “bulk discounts”. However the
extent of discounts will be dependent on the deals because the raw material rates differ from day to
day. Besides this we will be doing transactions on credit basis too but prompt payment will be
encouraged through discounts. Special discounts will be given to long-term major project contractors.
Moreover, we offer 15% discount if we receive the order one week before the delivery date. We will
also offer 20% discount if our customer uses his own warehouse for the storage of the ordered bricks.

VI. PLACEMENT (DISTRIBUTION)

Our distribution network will cover entire Karachi. The distribution network will include trucks, trolleys
etc from specified transportation providers on contract. At first, our distribution network will not be that
big, but in the coming years there is a great potential for the expansion of our network. Our distribution
network will expand as the demand of our bricks increases. Quick delivery will always remain our
preference, at starting we will promise the delivery of bricks in the same day as the order is received.
Later promise to deliver will shrink to within hours. Timely delivery will be guaranteed. We will charge
transportation cost separately from the cost of bricks. Transportation charges will vary from order to
order depending on the delivery location and other factors.

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VII. PROMOTION
• ADVERTISEMENT
• PRINT MEDIA

Initial public awareness will be ensured via Print media and electronic media.

Advertisement will be placed in “Sunday Jang news paper” for 1 month.

• ELECTRONIC MEDIA

Housing projects running advertisements on cable will be contacted to run a joint advertisement,
featuring the point that this project will use Blocks supplied by Green Brick Manufacturers.

• SIGN BOARDS

Sign boards will be displayed on project sites where these bricks will be used “This project is build with
Green Bricks”.

• BROCHURES AND BOOKLETS

A three color brochure designed on adobe Photoshop will highlight our innovative idea, offers, and
location of our business, contact number along with website address for further information. Initially we
will print 300 Brochures and distribute it to contractors of construction and will also print booklets
having some extra details especially for builders working on construction projects, offering them special
discounts on long term contracts, payment and delivery details etc.

• SALES PROMTION

We are offering discounts to our customers in the form of different packages. Like “early-order
discounts”, “early-payment discounts” and “bulk discounts”. However the extent of discounts will be
dependent on the deals because the raw material rates differ from day to day. Besides this we will be
doing transactions on credit basis too but prompt payment will be encouraged through discounts.
Special discounts will be given to long-term major project contractors. Moreover, we offer 15% discount
if we receive the order one week before the delivery date. We will also offer 20% discount if our
customer uses his own warehouse for the storage of the ordered bricks.

• PUBLIC AWARENESS AND PUBLICITY

Seminars will be arranged in universities for public awareness of our idea and brand. Several articles and
interviews of our researcher are already printed in renowned newspapers like Jang, The news, Dawn
news and many more. There was a symposium in the previous month in Turkey where this was

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presented by our researcher “DR. Uzair Khan” who went to turkey for this purpose by HEC. This
promoted the idea but our brand will be promoted through advertisements in papers.

We will collaborate with international agencies to further improve our product; this will ensure our
existence is known to the higher ups of government who collaborate with these agencies. This will
attract the attention of government contractors who seek cheap but reliable material for construction.

• EVENTS

Grand opening on 1st January, 2012 will be arranged on site. Our team of researchers, who contributed
this idea with their mentor who headed this research project, will be invited. Also international
environment protection agencies representatives will be invited. Media will be covering the event which
will be highlighting it in news.

World Environment Day (WED) is an annual event that is aimed at being the biggest and most widely
celebrated global day for positive environmental action. WED activities take place all year round but
climax on 5 June every year, involving everyone from everywhere. We will celebrate this event and
invite people from society, EPA, international environment agencies, contractors, builders and media for
awareness regarding our product.

• WEBSITE

A website will be developed with the address www.greenbricks.com.pk. This website will provide
information 24/7. It will also enable B2B customers to place orders online and customize the size of the
bricks, which cost them an additional amount in case they choose a product customized to their size.
Website will be launched one month in advance and it will be updated on daily basis. Our marketing
head along with the sales team will follow up the orders online.

Since initially we are operating in Karachi only. Therefore it will be not be wise to pay some search
engine for keyword search. We will promote our website through brochures, booklet, signboards and
visiting cards mentioning “For further information please visit our website www.greenbricks.com.pk”.

• WORD OF MOUTH MARKETING

Our product is less costly than ordinary blocks and we are targeting specifically B2B customers who
focus on cost plus reliability. These contractors often have contacts with each other, our satisfied
customers will tell others about this product and we will reward those customers with discounts who
bring other customers to the company.

• PERSONAL SELLING

Our primary tool of sales is personal selling. A team of two energetic sales people under supervision of
our marketing manager will approach contractors through various media like telephone, email, or a visit

KUBS | Marketing Management

to their office. Sales people will initially focus on giving the information to these contractors about our
business, what we offer; how we ensure a consistent and reliable supply of Bricks and at what prices
they can get this product.

10. OPERATIONS

I. LOCATION OF OUR FACILITY

Our factory is located 4 km from “Pak-colony” near “Ibrahim Ali Bhai School” and Asia’s largest marble
market.

• ADVANTAGES

Proximity to suppliers

 We require the industrial waste of textile, chemical and fiber industries which are very close to
our factory.
 This area has both residential and commercial plots with huge factories.
 Transportation is easily available for public and goods.
 Asia’s largest marble market is also very close to location and we use 3% marble power in blocks
manufacturing.
 Water hydrants are also in front of our factory so we have plenty of water supplies.
 Sand and cement availability is also convenient.

VIII. OUTSOURCING:

This has been an established practice of the firms that they store the industrial waste whenever it is
generated. 350 million gallons of industrial waste or affluent is released every day in Karachi alone for
which the firms have currently no viable solution, as there is no system Land filling. Moreover, the firms
incur cost in keeping the waste with them. The industrial waste obtained from chemical industry is in
sludge form, it needs to be treated in a plant specially designed for it. There are only two such plant in
Karachi. One is privately owned and other is owned by CDGK. Therefore they are either storing waste in
their warehouses or dumping it in nights illegally. We plan to ask these companies to pool in funds to
establish an incineration plant near their factories where this sludge will be treated and will be
converted to ash. As the waste after incineration gets reduced to 1/10 th of its size and mass, it is easy
and economical to transport it. As this plant will remain the combined property of these companies we
label it outsourcing.

Proximity to labor
 Residential areas are also close to our factory from where we can hire skilled labor easily
at standard rates of the locality.

KUBS | Marketing Management

IX. PROCESS

We will start processing the orders as soon as they are placed as well as per our policy we will
maintain an ending inventory of 30 % of the expected sales in the next quarter.

The process of making brick generally consists of the following steps:

1. Taking waste material from textile, chemicals and fiber industries burning that waste to
form ash in the facility funded by the group of industries whom we will help utilize their waste.
2. Gathering, crushing, grinding, screening, and mixing the raw materials (Sand, Water,
Cement, Ash).
The material’s composition will be as follows:

Material Composition

Cement 8%

Ash(burnt industrial 3%
waste)

Sand 89%

3. Machine can form the bricks at a very rapid pace around 2,000 bricks per hour.
4. Setting, drying, packaging and inventorying the final product.

Other concerns
 Store raw material like cement, sand, ash in dry and safe place with shelter and also
near to machinery as shown in the initial layout plan.
 Hire workers for cleaning, oiling, fueling and maintaining machinery and cleaning the
factory.
 Provide a clean office space environment for Clients to do business dealings.

KUBS | Marketing Management

 Entrance
Warehouse For
Raw materials

Machine
Shelter
Bricks

Lab

Office
Exit

Figure: Facility Plan

11. REVIEW AND CONTROL

Finance Head, Muhammad Waqas will be responsible for controlling the cost on monthly basis, assuring
as per plan;

1. Cash flows
2. Receivables
3. Payment to suppliers
4. Controlling the cost and expenses

Marketing head Zeeshan will be responsible for following the Action plan as per agreement between the
partners and capturing the customer feedback, assuring that his team of sales people successfully
establish and maintain contacts with key customers.

12. MARKET ORGANIZATION

Syed Muhammad Zeeshan Faheem will be the marketing head, who is one of the partners in this
business. Zeeshan will be supported by senior manager and CEO Muhammad Waqas. Two sales people

KUBS | Marketing Management

will be working under Mr. Zeeshan, who will be responsible for smooth and as agreed action plan of the
marketing department of Green Brick Manufacturers

13. ACTION PLAN

ACTION DEC JAN FEB MARCH APRIL MAY

Development of website 30TH

Grand opening 1st

Distribute brochures and booklets 10th

Display signboards 30th

Display advertisement in Jang news paper 5th

Display advertisement in Jang news paper 12th

Make contacts with contractors and builders 15th

Display advertisement in Jang news paper 19th

Display advertisement in Jang news paper 26th

Certify the durability from internationally recognized lab 15th

Republish brochures and booklet highlighting the certificate 30th

of durability
Celebrate World Environment day 5th

14. BUDGET

DATE OF MEASURE OF
ITEM COST
COMPLETION SUCCESS
Development of Hit rate of 1000 per
30th DEC Rs. 10,000
website month

KUBS | Marketing Management

 150 people in
Grand opening 1st JAN Rs. 20,000
attendance
Distribute brochures Distribute to 300
10th JAN Rs. 2,000
and booklets prospects
Displaying the sign
Display signboards 30th JAN Rs. 3,000 board so it is visible
from the road.
Display advertisement
5th FEB Rs. 5,000 Featured on page 2
in Jang news paper
Display advertisement
12th FEB Rs. 5,000 Featured on page 2
in Jang news paper
Make contacts with
Make contacts with 100
contractors and 15th FEB Rs. 30,000
contractors
builders
Display advertisement
19th FEB Rs. 5,000 Featured on page 2
in Jang news paper
Display advertisement
26th FEB Rs. 5,000 Featured on page 2
in Jang news paper
Certify the durability
Receive a certificate of
from internationally 15th MARCH Rs. 8,000
durability
recognized lab
Republish brochures
and booklet highlighting Distribute it to more
30TH APRIL Rs. 2,000
the certificate of than 300 prospects
durability
Celebrate World Attendance of 200
5TH JUNE Rs. 10,000
Environment day people
TOTAL Rs. 105,000

15. CONTINGENCY PLAN

Our one weakness can be demand management. We are expecting a sharp increase in demand of our
product which will be hard to fulfill in initial 1 st year of operation. We have a limited storage capacity and
we are operating in a plant of 1000 sq. yard which might not be enough to cater the increasing demand.
This might give our competitors; a chance to snatch these untapped customers and will hurt the
reliability of supply agreements.

We plan to accommodate this gap with our strategy.

KUBS | Marketing Management

First we have purchased a very heavy semi automatic machine of 5 Lac rupees. Which is capable of
forming 2,500 bricks in just one hour which if operated at full can produce as much as 30,000 within 12
hours of operation. Second is the issue of warehousing. We can tackle this issue by renting some ware
housing facility in nearby area. As it is industrial area large warehousing facilities are available.

KUBS | Marketing Management

SUPPORTING DOCUMENTATION
 December
GREEN BRICK MANUFACTURERS- MARKETING PLAN
10, 2011

16. FINANCIAL SEGMENT

I. PROPOSAL

Total start-up costs for “Green Brick Manufacturers” will be Rs 7,300,000. This includes cost to purchase
the necessary Land, equipment, supplies and beginning cash on hand. The start-up period for the
venture will run from 1st December 2011 till end of the year. The opening day for this facility will be
January 1, 2012.

X. FINANCING PLAN

The following chart breaks down the start-up costs and sources of capital.

Amount Sources

Rs 7,300,000 Equity

Amount Uses

Rs 4,000,000 Land

Rs 400,000 office+ constructed warehouse+ lab

Rs 1,800,000 Tax on sale agreement

Rs 500,000 Machine

Rs 200,000 Furniture+ computer

Rs 400,000 Startup operating Expenses.

Rs 7,300,000 Startup Capital

KUBS | Marketing Management

 December
GREEN BRICK MANUFACTURERS- MARKETING PLAN
10, 2011

17. FINANCIAL FORECAST

I. INCOME STATEMENT

The income statement is based on the educated estimate about sales mix 30% 3x8x12 inch block
and 70% 5x8x12 inch block and average price of Rs 7in year 2012 Rs8 in year 2013, Rs 9 in year 2014.
Assuming the sales mix remains constant, here are the financial projections. Note we are not mentioning
sales in terms of units it is because we have a sales mix.

Note: all Figures are in Rupees.

Year Year
Year 2012 Year 2014 Year 2016
2013 2015
UNITS SOLD 69,000 145,000 194,000 229,000 248,500
SALES PRICE 7 8 9 10 11
COST OF GOOD S
11.6 7.3 6.5 6.1 6.0
SOLD

Green Brick Manufacturers

Income Statement
For the Year ended Dec 31
Year 2012 Year 2013 Year 2014
Sales Rs483,000 Rs1,160,000 Rs1,746,000
Less: COGS Rs802,617 Rs1,055,433 Rs1,269,419
Gross Profit -Rs319,617 Rs104,567 Rs476,581
Operating Expenses
Marketing expenses Rs105,000 Rs50,000 Rs34,000
Utilities Rs3,000 Rs3,000 Rs3,000
Property tax Rs1,700 Rs1,700 Rs1,700
Depreciation Expense Rs9,000 Rs9,000 Rs9,000
Total Operating Expenses Rs27,700 Rs63,700 Rs47,700
Profit before taxes -Rs438,317 Rs31,533 Rs428,881
Less Income Tax Rs0 Rs1600 Rs21,444
Net Income or Loss Rs (438,317) Rs 29,956 Rs 407,437

KUBS | Marketing Management

 December
GREEN BRICK MANUFACTURERS- MARKETING PLAN
10, 2011

XI. BALANCE SHEET

Green Manufacturing Brick works
Pro forma Balance Sheet
As on Dec 31 year 20__

Year 2012 Year 2013 Year 2014

Assets
Cash Rs 106,406 Rs 85,529 Rs 1,396,967
Accounts receivables Rs 59,850 Rs 88,200 Rs 109,200
Inventory Rs 36,641 Rs 98,264 Rs 107,966
Total current assets Rs 202,897 Rs 271,994 Rs 1,614,133
Fixed assets
Land Rs 4,000,000 Rs 4,000,000 Rs 4,000,000
Machine Rs 500,000 Rs 500,000 Rs 500,000
Building Rs 400,000 Rs 400,000 Rs 400,000
Furniture Rs 100,000 Rs 100,000 Rs 100,000
Equipment Rs 100,000 Rs 100,000 Rs 100,000
less accumulated Depreciation Rs 136,800 Rs 273,600 Rs 410,400
Total Fixed assets Rs 4,963,200 Rs 4,826,400 Rs 4,689,600

Total assets Rs 5,062,683 Rs 5,529,956 Rs 5,907,437

Liabilities and owners equity

Owners Equity Rs 5,500,000 Rs 5,500,000 Rs 5,500,000
Retained earnings Rs -437,317 Rs 29,956 Rs 407,437

Total liabilities and owners equity Rs 5,062,683 Rs 5,529,956 Rs 5,907,437

KUBS | Marketing Management