1) EXECUTIVE SUMMARY Sanjtha Paint company is a thriving paint company in Sri Lanka, which strives to venture in to international market

while fulfilling the local customers from domestic and industrial markets. State- of -art technology with inspired and dedicated team of employees are the

competitive advantage of our company. Sanjtha company is a quality paint production company that specialises in paint manufacture for Industrial and Decorative paint industry

with wide product range. Sanjtha Paint company has been manufacturing paint since 2000.Therfore, Sri Lankan people are aware of about the Sanjtha Paint products more than twelve years. In paint manufacture, our company has been acclaimed its speciality for the durability and innovativeness of industrial and decorative paints. With our new modernised paint manufacture plant in Padukka Road, Meegoda, we have created a paint manufacture plant that complies with all the regulations and quality standards. All the products manufactured by our paint company match the specifications laid down by the SLS standards. In year 2008, the company received ISO 9001 certification, confirming its procedures to be on a par with the best in the world. The company paint laboratory is constantly testing raw material samples and evaluating paint in order that we keep pace with the market place. Our Paint Export facilities are growing and expanding at a rapid growth. By now Sanjtha paint company has accounted for the 0.8 % of market share of local paint market by the year 2011. Sanjtha companys objectives are to manufacture and sell good quality paint direct to the end user at acceptable prices. We believe that by targeting the high-end market, we can successfully occupy an emerging niche that other channels of distribution have not been able to target. With the implementation of the new marketing focus outlined in this plan, we will position our product line as the high-quality, elegant alternative to paint productions in the current paint market. Our ability to integrate emerging technologies in our production approach will provide strengths and establish a reputation of unmatched quality.

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2) STRATEGIC OBJECTIVES i) Company Vision With the intention to be the leading solution provider of architectural and industrial coating that satisfies the competitive paint market. ii) Company Mission Transforming lifestyles by providing world class coating solutions whilst caring for the environment and the community while maximizing returns of each stakeholder in the company and to become a socially responsible global corporate citizen. iii) Core values of the company Passion for Customers Obsession for Performance and dedication Driven by Innovation Concern for People

iv) Marketing Goals What we do for achieving our goals is always inspired by the company vision and mission. Anyhow the company wants to extend over country boarders to venture in to international market while shaping up and positioning the image of the company with the intention of bringing the foreign currencies. The team of the company is establishing an aesthetic creativity for making us unique from the durability and the quality. Quality standard is the company buzzword among the company teams. Not only that but also the company determination is to be eco-friendly and facilitator for the community for the development of public health and educational standards. Our company goals are as follows. Increase interest in Sanjtha Paints among building contractors. Enhance the business operation over the borders and venture in to India, Bangladesh and is Pakistan. Position Sanjtha paints as an alternative to the product of their key players Obtain 3% of total market share of Sri Lankan market share in 2013. Be the best paint seller in the northern and eastern province.

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3) SITUATION ANALYSIS i) Industry analysis i.i) Market characteristics The Size of Sri Lankan paint market is Rs.19 billion in value and 35-40 million litres in volume. It comprises more than 60 manufacturers. Six big players are controlling 97% of the market. g.CIC(Dulux/Akzo/Glidden),Lankem(Robbialac),AsianPaints(Royale/Permoglaze), Causeway(Luxury/Kenlux,SiliconCoatings),Nippolac,Macsons Lanka(Multilac). The demand for paints is relatively price-elastic but is linked to the industrial and economic growth. The industrial paint segment accounts for 15% of the paint market while the decorative paint segment accounts for 85% of paints in Sri Lanka. In most developed countries, the ratio of decorative paints and industrial paints is around 50:50.

Market share distribution of the key players of the industry

Western province (Colombo and suburbs) generates 50% revenue from the sales. Seasonal trend, Seasonal sales turn up on December & March. Volumes get doubled compared to an average month in paint industry is growing in-line with the GDP growth rate unless special developments occur (eg: construction boom). Average price level has shown an escalation rate of 8%-10% per a year due to 99% of industry dependence on imported raw materials In 2009, 16 establishments (more than 25 employees) and 2141 persons were involved in the paint industry which had generated an output of Rs. 7,174,407,400. It is 0.49 % of total manufacturing sector output (Rs.1,453,464,811,941) in Sri Lanka. Six key players accounted for 99% (Rs.7,102,663,326) by the end of year 2009. Worth of 6,807,803,099 from the
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production of paints was exported and it is 2.2% from total industry product (Rs 1,424,980,462,956) shipped from Sri Lanka. Output for a person engaged in industry is Rs 3,350,961. By considering all statistics, paint industry is vital for bringing foreign currency in to the country. Skimming through the time, we observed following drawbacks due to various circumstances. In 2008 and 2009 output volumes dropped by 32% and 18% respectively due to the economic downturn; the war between L.T.T.E and government forces, oil price escalation, and other costs which were caused by the petroleum price (e.g. Price of raw material, machinery and transportation).

Relationship between oil and paint in volumes In this industry we can observe no government support because no regulatory body or similar entity to protect small scale producers. The Paint Manufacturers Association of Sri Lanka is formed to put pressure to the government by collective bargaining. The Paint Manufacturers Association of Sri Lanka comprises eight of the industry's key players, namely, CIC Paints, Macksons Paints Lanka, Causeway Paints, Masons Mixtures, Lankem Ceylon, Asian Paints Lanka, Paints & General Industries and Silicone Coatings ii) Demand Drivers of Paint industry When the clients are selecting the desired paint product mostly they would care the following aspect of the paint production. Those aspects are as follows 1. Quality-durability, final finish 2. Price-affordability 3. Colour range

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4. Hassle Free application 5. Distribution-availability 6. Services including after sales services 7. Quality value perception (equilibrium between quality & price) is the utmost factor driving the demand for a particular brand. Seasonal impact is a critical demand driver for the industry as a whole. iii) PEST analysis This is a study of four forms of components of the external environment of our company. By analysing the external environment the company would consider and decide the strategic which the company should follow. iii.i) Political and legal environment In Our country, we can observe little or no attempt made to regulate the chemical related industry. Most of law relates to the pollutions influence the industry because paint production is based on chemical materials. However, the government encourages the entrepreneurs venture into various industries to make industrialised economy. iii.ii) Economic environment The Sri Lankan government is preparing an economic environment which is conducive to new entrants to industry. According to the government policy they want to reduce the unemployment rate and creating new employment opportunities for the people. The government believes that exporting would boost the economic growth and thereby earning foreign exchange. New markets from eastern and northern province have been open for the industries. There are various infrastructure-building-programmes have emerged and those create the vacuum in the markets. Hence, paint industries would be able to supply to trade off the demand of the market. The government policy on the foreign companies will affect the development of local paint company. Specially, foreign wealthy companies such as Asian paints, Causeway, CIC have the strong foot hold in the current paint market. It is not easy to local customer to fight with in the industry. Tariff barriers are also a part of economy and higher rate of taxation increase the product cost for paint

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Tariff Structure Paint Imports -

iii.iii) Sociocultural environment Most of the people of Sri Lanka are of Buddhists; therefore they have a tendency to attract to white and light colours. Specially, when they produce and market their product they should evaluate the personal aspiration of the customers. For an instance, people from northern eastern province would prefer vivid colours to light colours. Most of the people from hill countries concern about colours relating to green. Therefore the demand of colours would be different according to the culture. In addition to that, seasonal demands for paint will spring up due to New Year festive (January and April) and the output of the company should be controlled in accordance with. The desire and behaviour of potential buyer is also affected by the culture and the social environment. iii.iv) Technological environment The technological advancement of the company relates to the quality and the productivity and from the beginning to the end the quality of the production should be assured. Technology is not something static but forward-moving. Therefore, it is necessary keep touch with the new technological trends in order to minimise wastage and maximise quality and profits. Technological factors look at elements such as R&D activity, automation, technology incentives and the rate of technological change. The Research and development (R&D) is the essential process to identify the gap between the actual performance and the expected performance and evaluate the necessity of technology. In the current context, technology is valuable tool to reduce the pollution that matters a lot in the chemical related industry. iv) Market trends Paint Market is expected to grow at a rate of 15% -20 % in 2010 based on the experience in the first 2 quarters. This will be helped by the growth in related industries. A construction boom is expected (large on-going infrastructure projects such as sea ports, air ports and north
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& east rebuilding). 10% market exists in north & east and is expected to double due to various development products initiated by the government. Construction sector growth will surpass the expected growth in Goss Domestic Product of 7% -8% over the next five years -NDB stock brokers. Over 700 billion rupees worth of construction-related projects are planned by the government during 2010-2012 -Ministry of Finance and Planning. Expected boom in tourism sector need to build additional rooms and hotels and refurbish existing rooms. The share of industrial paints in the total paint consumption of the nation is very low compared to global standards. It accounts for 30 per cent of the paint market with 70per cent of paints sold in Sri Lank for decorative purposes. In most developed countries, the ratio of decorative paints in relation to industrial paints is around 50:50. But, with the decorative segment bottoming out, companies are increasingly focussing on industrial paints. The future for industrial paints is bright. In the next few years, its share would go up to 50 per cent, in line with the global trend. Sri Lanka's tourism industry has set a target of 2.5 million tourist arrivals by 2016, requiring the development of at least 15,000 new hotel rooms and major investment in large-scale resorts at new locations USAID Total number of hotel rooms to grow from about 15,000 now to 22,000 in the next two years SL Tourist Board v) SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities facing Sanjtha Paint company. Strengths

Strong relationships with vendors. Unique, cost effective manufacturing processes. Strategic alliances with many distributors. State-of-art technology Dedicated workforce

Weaknesses

A lack of brand equity, a result of being a relatively new company. The struggle to maintain the unique manufacturing process as a trade secret.

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Significant research and development costs. Inexperience in international trade. Lack of working capital

Opportunities

Participation within a growing industry. Increased sales opportunities with the perfection of new paints or more cost effective manufacturing techniques.

The ability to increase the capture of human capital developed within the organization.

New markets in northern and eastern provinces

Threats

Future/ potential competition from large, multi-national paint manufactures. A slump in the national/world economy. Unforeseen governmental regulatory actions. Rigid taxation New entrants and substitute paint production in small scale. High labour cost compels customers to postpone their decisions. No clear government support. Use of harmful raw materials in manufacturing (methyl alcohol, lead, mercury, chromium, arsenic).

No strict Health & Safety Standards in Sri Lanka.

4) MARKETING STRATEGIES i) Market Segmentation Geographical Basis based on hardware density Based on income / buying power 1. Top-tier high income earners who generates revenue of 40%. 2. Mid-tiermiddle level income earners who accounts for highest volume & 40% revenue. 3. Low-tierlow income earners who generates 20% revenue. ii) Target Market House owners Other building owners Architects Building contractors
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Professional / non-professional painters Engineers

For the purpose of defining the marketing strategies it is essential to consider the environmental forces which effect on iii) Porters 5 Forces Analysis 1) Threat of new entrants low Dominated by strong international & local players Strong distribution network Specialized technology & labour Unutilized capacity (40%) of existing players Brand name strength In the Sri Lankan context number of small players growing rapidly as a lot of niche segments not catered by key players, specially industrial coating and ancillaries. 2) Threat of substitutes low Low availability of substitutes. Potential substitutes are expensive eg: cladding & glass curtain 3) Bargaining power of customers low High switching cost to customer Due to similar price levels of key player. 4) Bargaining power of suppliers -low Low switching cost 5) Rivalry high Very high competition among existing players Overall attractiveness of the industry -moderate Growth potential(Per capita paint consumption in Sri Lanka less than 2 L In Europe & USA 8 10 L) Trend is to build big houses. Yet, Unutilized capacity (40%) of existing players By analysing the above model, we can adopt product differentiation strategy and product focus strategy because our company have Highly skilled and creative product development team, strong sales team with the ability to successfully communicate, the perceived strengths of the product, and Corporate reputation for quality and innovation.in addition to that we can adopt focus strategy due to the ability that we have to cater a particular target or niche extremely well.

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We can support strategy by using both push & pull strategies are extensively. Push strategies are aimed at authorized dealers and hardware shops. Quantity discounts Foreign trips Annual parties Pull strategies are aimed at attracting customers. TV commercials Colourful hoardings

These strategies will become crucial when the season falls Introducing innovative products and features. eg: Water proofing products,Washable paints, Anti-bacterial protection, Space & Light a perfect solution for small dark rooms.free paint mixing facilities. Water proof paint. Brand variety eg: CIC introduced Glidden to compete in the rural & inferior markets Strategies to change the customer perception. eg: Robbialac -Colour studio,Multilac Colour bank, Asian Paints Colour mixing centre Strategies to win social attraction. eg:Asian paints giving free training for painters. CSR projects such as providing free paint to Dhalanda Maligawa

iv) Marketing Communications The following areas of the marketing communications mix will be implemented to for this marketing plan. Advertising - Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Personal selling - Personal presentation by the firms sales force for the purpose of making sales and building customer relationships. Sales promotion - Short-term incentives to induce the purchase or sale of a product or service. Public relations - Building good relationships with the companys various publics by obtaining favourable publicity, building up a good "corporate image", and handling or heading off unfavourable rumours, stories, and events.

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Direct marketing - Direct communications with carefully targeted individual consumers to obtain an immediate response and cultivate lasting customer relationships.

Advertising Forms: following methods are supposed to be implemented to bring our products and make potential customer about products. Following media methods would be used for bringing our image. Media List
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Print Full Page Magazine Half Page Magazine Posters Outdoor Billboards Transit Shelters Telephone Pole Ambient Bus Wrap Stairs Point of Purchase Floor Decals Shelving Ads Convenience Store Promotional (corresponding materials) Community Clean Up Video Competition Web Banners Promotional Pages

Email coupon

5) MARKETING BUDGET Marketing budget displays here, the allocation of monetary resources for the purpose of utilizing. Anyhow the board of director have the authority to change budget according to the necessity. The total amount of Rs18, 970, 990.00 is allocated for the marketing budget by our company for the year 2013. In this budget how our company is going to expend money for the various sector of the marketing. According to seasonal demand, religious period and festive season were considered. Anyway, in ad hoc situations, the allocation would be adjusted.

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5)

6)IMPLEMENTATION AND CONTROL i) Implementation The following table and chart identity the key marketing programs, with their managers. Dates and budgets are clearly established. The managers are informed of their main programs and they are on board with implementation. We will be tracking plan-vs.-actual results for each of these programs and discussing them at our monthly marketing meetings. The programs will be revised each year. This year's plan includes only the programs to be implemented this year.

Action plan for the implementation Marketing action Branding Advertising Web sites Direct marketing Internet marketing Collateral Press relations Public relations Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

ii) Evaluation and control Sanjtha Paint Company is proud of themselves on high levels of control and evaluation methods. These have been depicted by the company in extensive quality control, risk analysis and evaluation. ii.i) Quality Control It is an on-going process for Sanjtha Paint Company to ensure Total Quality Management (TQM) is met within the company. Our company work in accordance with government regulations in order to meet Sri Lankan Standard (SLS).Such standards will be met through employees checking samples from every variety of decorative and industrial paints for 100% accuracy in quality and technical features. Through audits, team leaders and management staff will document progress in order to continually improve quality of all production.

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ii.ii) Evaluation Analysis Sanjtha Paint Companys evaluations will be based primarily on meeting sales and market share expectations as described above. We will be conducting sales analysis every 6 months and adjusting the promotion budget accordingly even if the budget is allocated at the beginning of the year. Furthermore, key performance indicators (KPI) will be undertaken by all employees in order to maintain a high standard of achievement within the organisation. In relation to the companys promotional schedule, it will be reviewed every 3 months in order for the company to meet deadlines and to rectify where it is necessary.

sources
1. http://www.oppapers.com/subjects/how-to-adapt-communication-to-meet-differentcommunication-needs-of-adults-page3.html 2. http://www.freepatentsonline.com/article/Academy-Strategic-ManagementJournal/263157508.html 3. https://www.seattle.gov/parks/partnerships/RFP/golf_marketing_plan.pdf 4. http://www.cbsl.gov.lk/pics_n_docs/10_pub/_docs/efr/annual_report/AR2011/English/cont ent.htm 5. http://www.scribd.com/doc/40461650/Paint-Industry 6. http://www.mplans.com/chemical_laboratory_marketing_plan/situation_analysis_fc.php 7. http://www.scribd.com/doc/4868752/Chemical-laboratory-marketing-plan

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