23 Mar 2015
Construction Chemicals are the broad range of chemicals that are used as additives before or after construction stages to enhance the strength and durability of concrete structures. These range of construction chemicals are further divided into admixtures, flooring adhesives, water proofing, surface treatments, sealants, grouts and anchors, depending on their use in various applications of repair and construction.
The Pakistani construction chemical industry despite its troubled economy is growing at a steady rate due to availability of natural resources and construction projects within country and neighboring Afghanistan. Construction chemical industry is very closely related to construction industry and is very much dependent over it. Many international companies those are considered as pioneers and giants in construction chemicals have developed construction sites in Pakistan to capture this geographic segment. Many local companies have also stepped in this line of business and are adapting international standards in technology and processes that has increased this industry magnitude but also developed the competition. Though it is a growing industry in local perspective yet at the same time on a smaller level it also attracts the attention of the niche segment of qualified people who know what will be the ultimate satisfaction that they will receive after using such type of products and services.
Internship in MBA program is very helpful in understanding the standards, codes and ethics that are practiced in real markets. As a marketing student to gain information on how companies in this competition adopt marketing strategies and focus on the needs and wants of the customers to stay contemporary and profitable. For this purpose I took internship in marketing department of Ultra Chemicals, a construction chemicals company whose industry is very dynamic. The company started its business in 2003 as a licensee of Ultra Construction Chemicals LLC USA and specializes in importing and manufacturing of construction chemicals Admixtures & Surface Treatments, Grouts and Anchors, Water proofing Materials, Industrial Floorings, Concrete Protective Coatings, Joint Sealants & Adhesives.
I gained a lot of practical experience working in this company and I am quite confident that this exposure will have a positive impact on given assignments and entrepreneurial activities as a professional in marketing. I did internship for six weeks of one week in finance department and rest in marketing department to have a broad exposure. Working in finance department was more like to get a general idea about department functions and I was able to get interaction with finance department staff and watched their general activities. Higher management corporation and support helped very much in gaining the inside view of the organization processes and making it a good learning experience. During the internship period I met many clients, people in the marketing field and observed their activities. In this report I have discussed technical terms that are used in this industry and conducted SWOT analysis. At the end of this report I have made some conclusions and recommendations for the company. Vision and Mission statements are as follows:
To be the leader in chemical industry and to serve commercial, residential and industrial construction by utilizing our vast research, expertise and experience.
We at Ultra chemicals are totally committed to developing customer-valued, admixtures, surface treatments, protective coatings concrete repairs, industrial flooring, grouts & anchors, adhesives, waterproofing & sealants solutions.
Our focus is directed toward continuous improvement, superior quality and exceptional service.
01
8
i. Brief history
8
ii. Nature of the organization
9
iii. Product lines
10
iv. Brand portfolio of the organization
11
v. Strategies of branding used by the organization
12
vi. List of main clients of UC
13
vii. List of main competitors of UC
18
02
19
i. Organizational Hierarchy chart
19
ii. Number of employees
20
iii. Introduction of all the departments
20
iv. Comments on the organizational structure
21
03
21
i. A brief introduction to head office
21
ii. Starting and ending dates of my internship
21
iii. Names of the departments in which I got training
21
04
22
i. Description of activities performed by departments
22
ii. Description of the tasks assigned tasks
22
05
25
i. Department hierarchy
25
ii. Number of employees in Marketing department
26
iii. Marketing operations
26
06
27
i. Segmentation strategy
28
ii. Target marketing strategy
28
iii. Product planning, development & management
28
iv. Positioning
29
v. Pricing strategy
30
vi. Distribution strategy
34
vii. Promotional strategy
35
07
36
i. Department hierarchy
36
ii. Number of employees working in sales department
36
iii. Sales operations
36
08
37
i. Sales methodology
37
ii. Type of selling
37
iii. Sales returns procedures
38
09
39
i. Process of developing relations with customers
39
ii. Techniques of retaining the customers
40
iii. Techniques of attracting new customers
40
iv. Ways of handling different kinds of customers
40
10
42
11
44
12
46
13
46
14
47
Ultra Chemicals, LLC. a, USA based company adopting Market Development and Product Development Strategies formed its subsidiary, Ultra Construction Chemicals (PVT) Limited.
The company started its operations in Pakistan in 2003. It provide improved quality construction additives as well as technical support to different sites including Commercial, Residential, Housing Societies, Underpasses, Flyovers, Dams, Hydro powers, Combined Cycle Power Projects, Bridge Structures, Airports and Canal Lining etc by utilizing research and expertise to serving valued customers throughout its region.
The Company imports raw materials of most of its chemical products from various countries like, Japan, Korea, Russia, South Africa and America. Admixtures are blended and mixed at Ultra chemical Processing Unit which is located exactly 4KM, off Ferozpur Road, Lahore
Epoxies in finished form are directly imported from Japan & Korea through its parent company. These are imported in bulk quantities and re-packed into small tin packs for further selling to the customers.
The Company has strong technical team which provides technical services and supervisions to its customers. The services include product applications, Precaution, port life, full cure time, and final strength of the products and concrete cubes.
The business is classified as consumer durables because the nature and use of the products in processes and projects are made so that the projects have extended lives and durability in their structures.
The company offers a complete range of construction chemicals/additives which are used to enhance concrete structure life, workability, quality, and strength. The wide range of construction chemicals products includes:
Concrete Admixture
Ultra Powder 2000
Ultra Super Plast 470
Ultra
Grouts n Anchors
Ultra Lock E3-GP
Surface Treatment
Ultra Curing Compound
Industrial Flooring
Ultra Hard Floor
Protective Coating
Ultra Tuffcoat-90
Water Proofing
Ultra Seal Grey
Joints Sealants etc
Ultra Poly Urethane Sealant
Branding Strategy plays an important role in creating a, sign, symbol, and name that differentiates and identifies a product from other products. An effective branding strategy provides you a chance to penetrate and increase market shares in a competitive market. Branding is very particular in nature that a company adopts under some condition like product, consumer behavior and company position in competitive environment.
The company has adopted Range Brand Strategy. This strategy offers one brand name through a single promise for a range of products belonging to the same area of competence. Ultra Construction Chemical has only one brand name (Ultra) which is used for all of its range of interrelated products.
International Air Port Sialkot.
Greater Thai Canal.
Kachi Canal.
Rainee Canal.
KCI Chashma.
Satpara Dam.
Sher Shah Bridge Multan.
Mole Power Project Kohat.
Head Baloki Thermal Power Station.
Islamabad Muree Motorway.
Lahore to Gujranwala Road Bridges.
Pakistan Atomic Energy Commission.
Chief Minister Secretariat Lahore.
President House Islamabad.
Prime Minister House Islamabad.
Metro Cash & Carry.
Pioneer Cement Factory Joharabad.
Best Way Cement Factory Chakwal.
Gharibwal Cement Factory Find Dadan Khan.
Saadi Cement Factory Hattar.
Mustehkum Cement Factory Hattar.
Fauji Cement Factory Fatah Jhang.
Thatta Cement Factory Sindh.
Lucky Cement Factory Karachi.
Pakistan Cement Factory Chakwal.
DG Cement Factory D.G Khan.
East Pakistan Chroome Tainery Shaikhupura.
Universal Leather Kahna Lahore.
Yusaf Tainery Sahiwal.
Dada Tainery Ferozpur Road Lahore.
Sapphire Finishing Raiwind Lahore.
Nishat Mills Defence Road Lahore.
Nishat Chunian.
Five Star International Faisalabad.
Manakine Textile Rohi Nala Lahore.
Ehsan Sons Raiwind
Master Textiles Raiwind
Koh-e-Noor Textile Raiwind Mange Road Lahore.
Mayfair Textile Raiwind
Azgard-9 Raiwind.
Akash Textile Faisalabad.
Sonex Tiles Industry Kamokey.
Mater Tiles Gujranwala.
Bata Pakistan.
Nestle Pakistan Kbirwala Sheikhupura.
Pak Arab Fertilizer
Fatima Fertilizer Rahim Yaar Khan.
Angro Fertilizer Ghotki.
Ghani Glass Industries.
Honda Car Factory Multan Road Lahore.
Honda Motorcycle Sheikhupura Raod Lahore.
LG Factory Sunder Industrial Estate Lahore.
Faisal Asad Textile Layyah.
Coca Cola Lahore
Pepsi Cola Lahore.
Sunder Industrial Estate Lahore.
Clariant Pakistan Jamshoro.
Millat Tractors Sheikhupura Road Lahore.
KSB Pumps.
Doctor Hospital Lahore.
Adil Hospital Defence Lahore.
Izhar Group of Companies.
Izhar Pvt. Ltd.
Gondal Precast Gujrat.
Imam & Co
Jamal Precast Rawalpindi.
Saeed Precast Kohat.
Rana Concrete Lahore.
Junaid Pool Plant.
Potential Engineers
C-Mix Concrete Lahore
Ameer Pharma Shaikhupura Road.
Sharooq Pharma Ferozpur Road Lahore.
Shahzaib Pharma Haripur.
Pharmajin Ferozpur Road.
Gyton Pharma Raiwind Road.
Glaxo Smith Kot Lakhpat.
Selmore Pharma Multan Road Lahore.
International Pharma Defence Road Lahore.
Zakfas Pharma Multan.
Mass Pharma Raiwind
Ethical Lab Thokar Niaz Baig Lahore.
Mac & Rains Pharma Raiwind Road.
Pace Pakistan Pvt. Ltd.
Rabi Centre Lahore.
Ahad Tower Lahore
AH Tower M.M. Alam Road Lahore.
Pak Gulf-7 Star Islamabad.
Sethi Motors Model Town More Lahore.
Essem Hotel Islamabad.
Emmar Housing Project Islamabad.
Defence Housing Authority Lahore.
Eden Developers/Housing.
Bahria Town Lahore & Rawalpindi.
EME Society DHA Multan Road Lahore.
City School System.
Beacon House Schools System.
Salamat School System.
Laccas School System.
Punjab Group of Colleges.
Askari Villas Airport Lahore.
Aero Developers
Mubarak Sales Center Lahore.
Al-Gugair Giga Tower Karachi.
Rehman Hospital Ferozpur Road Lahore.
Thokhar Niaz Baig Fly Over Lahore.
Muslim Tower Under Pass Lahore.
Royal Palm Golf Club Lahore.
Warid , U Fone,Telenor Towers.
List of major competitors is appended below
SIKA International
BASF Pakistan
FOS-Pak Construction Chemical (Pvt) Ltd
ABE- Construction Chemical (Pvt) Ltd
Imporient Construction Chemicals (Pvt) Ltd
Zohebia Construction (Pvt) Ltd
The organizational structure of Ultra Chemicals has functional departmentalization structure with centralized decision making.
i) Organizational Hierarchy chart
The total numbers of employees working in Ultra Construction Chemicals offices (head office & branch offices) and in factory are 120
Human resource department of Ultra construction chemical dealing with matters of employees like, training, hiring, labor relations and benefits. Human resource management also plays an important role to make employee labor force well-organized as well as maintaining employee database.
Every organization plays an important role to meet the need of all of its stake holders. This is true in the finance sector. Ultra construction chemical has a strong finance department which plays a broad range of roles to under take inside and outside of its business. The finance department of Ultra construction chemicals handles all traditional responsibilities and finance matter such as finance accounting, payroll management, recoveries, estimating and handling cash in hand and outflow, record keeping and managing liquidity.
It is the major responsibility of marketing department of Planning and coordination of all marketing activities. Ultra construction chemicals marketing department works to promote their products at reasonable price in the market. The marketing department of Ultra construction chemicals is also responsible of generating new inquiries, through tender opening, news papers, building consultants, contractors and media. Developing long term relation with exiting as well as new customers.
The sales department of Ultra construction chemical is responsible for the sales of the company's manufactured products and services. Payment collection, after sales services, logistic, controlling and assessing sales force activities is also duty of Ultra Chemicals sales department.
Ultra Construction chemical has departmentalization decision making structure. It includes wide span of control with central decision making approach. This type of decision making strategy is good for company products, services and business.
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Ultra Chemicals head office is situated in 26 CC-2 Civic Centre, Central Plaza, New Garden Town Lahore, where I conducted my internship. It is floor which is divided into four departments that include finance, marketing, sales and human resource departments.
Staring date of my internship is June 01, 2010 and ending date is July 13, 2010.
I got training in Finance department for one week starting from June 01, 2010 to June 08, 2010 and learned voucher entries, book keeping, journal entries.
From June 09, 2010 till the completion of my internship. During this tenure, I learned / performed the following: -
Companies Marketing policies
Market Analysis & Prepared Marketing Plan
Promoting Company's products
Understanding customer's needs & requirements
Internship Training program started on June 01, 2010 and ended on July 07, 2010
Activities of this department are recovery of cash from clients and agencies, preparation of budget, payroll management, account maintaining and keeping records.
This department is responsible for conducting marketing research, advertising and promotion, devise a marketing plan, manage product portfolio. In addition to these activities this department focuses on customer needs, develop and communicate with customers, develop plans that would help in gaining a competitive edge in competition.
Separate target and separate responsibility is assigned to sales representative. I had to meet 0.6 Million Sales Target during my Internship
meeting with chief civil engineer: (M. Israr Farrooqi) , discussion regarding epoxy sacreeding (used in hygienic & chemical resistant floor in food departments, hospitals lobby, beverages, food processing plant, pharmaceuticals production plant, cold storage ) and self leveling in new cereal plan building
Visit to Head of construction, Mr Khwaja Tasueef at Metro cash & carry Thokar Niaz Baig Lahore for water steel structure water proofing with(epoxy primer, intra seal flex=high elongation coating & pasting of polyester fiber,
c) Visit to Sapphire power plant Muridke:
Met Mr. Rana Khaliq ur Zaman Arif and discussion regarding grouting of diesel tank pipes with some high strength epoxy material. And surface treatment of water unloading station of acids like (caustic soda, HCL, H2so4 (sulphuric acid) and water proofing of underground storage tanks
d) Visit to Nishat Mills Ltd:
Its head office is situated at 7 Main gulberg, Lahore. I had a detailed discussion with Mr. Khurram Procurement Manager regarding all construction products specially focused on related jobs like grouting of power looms machines foundation.
e) Visit to Coca Cola concentrated plant:
It is situated 1 N Gulberg industrial area Lahore. A brief discussion with Raza Ali maintenance manager regarding epoxy sacreeding and self leveling of floor (hygienic coating) for hygienic conditions such as non bacterial growth.
f) Visit to Descon Engineering Limited:
The head office is located at Ferozpur road Lahore. A detailed discussion with Mr. Rafiq (Project Buyer) regarding treatment of expansion joints Ultra Safe Lastic-V (sealant for vertical surface) for Mangla dam Projects and Satpara Dam Project for rebarring of concrete structures.
g) Visit to Dawood Hercules Sheikhupura raod lahore:
The corporate Head office: 35-A, Shahrah-e-Abdul Hameed Bin Baadees (Empress Road), Lahore 54000, Pakistan. I have conducted a meeting with Mr. Rasheed (chief civil) regarding workshop floors treatments with some epoxy high strength materials and surface treatment of cooling tower basin with some cement materials and polymer added mortar.
Marketing department has a traditional structure with decentralized decision making and narrow span of control.
There are ten employees working in marketing department of Lahore head office.
Marketing department of Ultra Chemicals performs various activities to enhance the positioning of brand and products. Performing activities to measure marketing and planning, advertising budgets, project work and promotional campaign results while systematically improving effectiveness and efficiency.
After completion of each project the marketing department makes reports and analysis of the completed projects.
It is a planned activity that allocates revenues and expenses that are needed to carry out various marketing activities. It also covers pricing decisions specific to clients, rewarding employees with bonuses and also to make product range more innovative.
Brand image is positioned so that the perceived value to the customer would increase brand equity by continuously improving the band contract .
Pricing objectives and strategies are defined, in order to have optimal pricing. Terms and conditions of pricing are also established.
Market researchers conduct the research, prepare reports and present to marketing director.
To expand customer base and find new customers are key assets to any firm specially in this challenging industry. Advertising and promotion strategies are used to find and attract new customers. For this purpose Ultra Chemicals launched many campaigns to increase their brand awareness by effective advertising and promotions systems.
Marketing plan is prepared at the start of the year, targets are set to achieve and strategies are adopted to achieve these goals. Based on market research and analysis a plan is prepared and managers make sure that objectives are carried out without delays.
Segmentation strategy depends on the market potential and the ability to satisfy the customer needs. For this reports from market research process are consulted.
Segmentation strategy used by Ultra Chemicals is
Geographic segmentation is the dividing of the target market in various segments depending on the customer's usage and demands for those products. Clients of Ultra Chemicals are from various cities, and construction sites within Pakistan that require the products produced.
Behavioral segmentation is the dividing of the target market in segments according to potential buyers of products and their knowledge, usage and attitude towards that product.
Products of Ultra Chemicals are used by such people and professionals who are knowledgeable and understand the brand promise that it offers, because they are looking for quality and durability.
Market research process also define the target market that helps in identifying those market segments that are potential clients and agencies that utilizes the products & services produced by a company. Right identification of the target market helps in saving time and monetary costs. Target market primarily includes those customers, regions and all those projects that are related with construction industry. The nature of this industry requires a market that is composed of knowledgeable and technical people who know what value and promises this brand offers. Though it is a growing industry in local perspective yet at the same time on a smaller level it can depends and target the niche segment of qualified people who know what will be the ultimate satisfaction that they will receive after using these products. On a larger scale Ultra Chemicals targets large scale projects.
After identification and selection of target market, strategies used by Ultra Chemicals are product and market specialization with full market coverage that span over whole country. Product specialization is used because the company has the potential to customize the products according to the need of their client agencies, and market specialization is used because the company offers this target market a variety of its products for usage.
After market research and careful analysis of market opportunities and assessing the needs of the customers, product planning process is started which aims at answering questions like which new product should be introduced or are there any modifications that can be made in the current product portfolio. What will be the process of after sales service and at what time the product should be introduced in the market. However basic product planning starts with idea generation many internal sources like customers, suppliers etc are consulted. When data is gathered from various sources is gathered, further screening and short-list is made and more feasible ideas is selected.
Ultra Chemicals manufacture their products in their production plant which is situated at Defence Road Rohi Nala, Opp: Kacha Tiba Village, Industrial State Lahore.
Basic raw materials are imported from various countries and under the supervision of qualified team of plant managers, supervisors and chemical analysts products are manufactured according to ASTM (American Standard testing Method) which is an international standard developed by American society for testing materials.
When new product is developed then it is managed by commercialization which deals with the timing of the launch of the new product, also where and when to launch the product. After that test marketing is carried out where the product is tested in real market setting. Ultra Chemicals uses the push strategy and send out notifications, samples and promotional material to their regular clients and make the characteristics of the product known and managed through a communication network of professionals and customer service. All products of Ultra Chemicals are leveraged under its unique brand name.
Positioning is what we do to the mind of our customers it should be done carefully because it is the foundation on which other marketing decisions are built. Any change in the positioning can result in price fluctuations.
Since the launch of Ultra Chemicals in 2003, the company has done effective promotional campaigns and developed a large customer base. They were successful in setting the perception of a company that offers a wide range of high quality to meet the need of customers by enhancing the safety, durability and design of construction. These activities resulted in good brand positioning and the perception of their products carry values of strength, reliability, durability and adaptability. Customers know that the brand fulfill its set of promises. There may be multiple positioning strategies based on the target market segment, but based on the nature of industry and business Ultra Chemicals positioning strategy is universal for all its segments i.e. to deliver strength, durability, and life of the projects.
Pricing is the very important factor in the product mix. In positioning of the company products pricing can affect company's image and attitude of the customers. It is very strategic in nature and require careful planning. Price fluctuations can result due to a change in the positioning of the company. A firm operates in an environment that is composed of factors like competitors and legal systems such as price controls to prevent pricing too high or too low. A firm should also consider that setting a price too low can lead to price war among competitors. There are various pricing objectives that a firm pursues
To maximize profit
Increase revenue
Increase selling
Increase profit margin
Use pricing to signal high quality
Only meeting costs to stay in market
Avoiding price wars
Based on desired objectives a firm can pursue various pricing strategies like
Cost plus pricing
Premium pricing
Psychological pricing
Target base pricing
It is generally accepted that the price should not be lower than the costs associated in conducting activities.
Ultra Chemicals pricing objectives are to increase profit margin and use price to signal high quality. There strategy is based on psychological and premium pricing strategies. Psychological pricing is used because the brand is already positioned in customer mind as having value attached of strength, durability and reliability that gives mental satisfaction with not much burden on budget.
Customers take price as a sign of quality.
Premium or value based pricing is also used based on the value that it has created for customer. Customers are priced according to the performance of products and technical expertise provided by the company. This pricing is very profitable for Ultra Chemicals and a high profit margin is set on it.
As general practice prices are quoted to customers with thirty days validity that is subjected to change due to circumstances. There are factors that affect the pricing mechanism of Ultra Chemicals. Any change in trade tariff can bring a change in the pricing method. If the pricing of the raw materials fluctuate or there is a revised import regulation by the government then Ultra Chemicals has the right to change its price under such scenarios. Various payment modes are also acceptable
Cross Cheques
Cash
Credit only to loyal regular customers
Pay order
Pricing also depends on discounts and allowances offered to customers
Quantity based discount:
This is applied when products are purchased in bulk
Payment Discounts:
These are offered when credit payments that are received earlier than due date.
Cash discounts:
This is offered on the invoice when the client makes cash payment at time of delivery of the products.
Trade Discounts:
These discounts are offered to wholesalers and dealers of Ultra Chemicals products in different cities across Pakistan.
Special discounts:
These are offered to customers in order to capture the specific target market. It is also offered to clients whose project is huge and can provide benefits to Ultra Chemicals in the long run.
Pricing of Ultra Chemical products are as follows:
55.00
kg
1kg, 5kg, 10kg, 20 kg
30.00
kg
20 kg Bag
1,100.00
kg
2.5 kg
400.00
kg
8 kg
200.00
Ltr.
5 Ltr, 30 Ltr,210 Ltr
175.00
kg
5 Ltr, 30 Ltr
45.00
Liter
5 Ltr, 30 Ltr, 210 Ltr
70.00
Liter
30 Ltr, 210 Ltr
60.00
Liter
30 Ltr, 210 Ltr
40.00
Liter
30 Ltr, 210 Ltr
28.00
Liter
30 Ltr, 210 Ltr
50.00
kg
1 kg, 8 kg
30.00
Liter
30 Ltr, 210 Ltr
35.00
Liter
30 Ltr, 210 Ltr
35.00
Liter
30 Ltr, 210 Ltr
80.00
Liter
30 Ltr, 210 Ltr
80.00
Liter
30 Ltr, 210 Ltr
700.00
kg
2.5 kg
1,800.00
Litre
1 Ltr, 2 Ltr
250.00
kg
16 kg
600.00
kg
8 kg
500.00
kg
8 kg
400.00
kg
10 kg
25.00
kg
20 kg
700.00
kg
2 kg Pack
350.00
Ltr
5 Ltr, 30 Ltr
350.00
kg
8 Kg
350.00
kg
8 kg
350.00
kg
8 kg
20.00
kg
20 kg
300.00
kg
16 kg
350.00
kg
16 kg
600.00
kg
2.5 kg
700.00
kg
2.5 kg
700.00
kg
2.5 kg
700.00
kg
1 Kg
550.00
kg
650.00
kg
700.00
kg
110.00
Liter
30 Ltr, 210 Ltr
50.00
Liter
30 Ltr, 210 Ltr
50.00
Liter
5 Ltr, 30 Ltr
400.00
Liter
5 Ltr, 30 Ltr, 210 Ltr
300.00
Liter
250.00
Liter
80.00
kg
16 kg
85.00
kg
16 kg
90.00
Kg
16 kg
Distribution strategy is how a company supplies its products to various segments of the target market. These strategies depend on the types of products offered in the target market. Horizontal integration is used by Ultra Chemicals to sell its products in different markets through its dealer network. Based on the nature of the products and the target industry Ultra Chemicals distributes its products through its dealer network across Pakistan. The company has also extended sole dealerships in other cities like, Peshawar, Sialkot, Multan, Kohat and Baluchistan. Sales agents after negotiating a successful sale with customers allows the customers to directly procure its supplies from the company.
Promotion is also a key activity of marketing department. Use of promotion and advertising through main media can help in expansion of the market segment.
Products are promoted through various activities like giving free coupons, samples, rebates etc.
In Ultra Chemicals products are promoted through various channels.
Attractive price reduction to customers is offered so that they would consider a purchase.
Rebates are given to channel members, distributors and dealers in order to push the products using push strategy.
7. Structure of the Sales Department:
Sales department has divisional structure with narrow span of control.
i. Department Hierarchy
ii). Number of Employees in Sales Department:
There are 10 employees working in sales department
iii. Sales Operations
Enquiry generating
Receiving orders
Making Sales visits
Distribution & deliveries
Logistics & Storekeeping
After sale service
Generate inquires by visiting the construction sites, projects. Housing societies, commercial buildings, power projects, and canal lining, dams and roads structures. Marketing department is also exploring new opportunities and follow up till maturity for orders. Payment Clearance, delivery & logistics and after sale service is also responsibility of this department.
Primary function of this department is attracting new customers also maintain and service old customers. It also helps the marketing department in meeting its objectives. Sale force at Ultra chemicals analyzes and survey new territories to discover new markets and improving old markets. Each sale representative is given a monthly target of 0.6 million rupees and to capture new opportunities.
i) Sales methodology:
Ultra chemicals use sales methodologies as they deliver the products on site and manage logistics and quantity schedule. Sales are further increased by giving extended sole dealerships in other cities like, Peshawar , Sialkot, Multan, Kohat, Baluchistan. Agents in these cities have deposited advance security and products are delivered on basis of their order demand, that are send to them using look goods transport companies.
Tenders are received from chamber of commerce and local news media which are then replied and quoted
Payments are accepted in terms of cash, cross cheque, and post dated cheque form. Also credit is extended to old trust worthy clients and agencies.
ii) Type of selling:
It is considered to be the most effective selling techniques because it is an interactive channel where one can listen and analyze customer need by asking questions and feedback without much delay of time.
Ultra Chemicals has a team of experienced sales force that some of them use relationship based selling
Sales force staff visit and inspects the ongoing construction sites in area, project managers as well as residence engineers of those projects are then contacted and samples are dispatched for trial and approval.
A notice of related product as well as samples are referred to concerned consultants i.e. structure engineers who then carry out tests and finalize the products as well as source company.
Sales are returned due to following reasons:
Due to expiry of shelf life
Defective quality
Mishandling and incorrect logistics
Tempered cover seal
These complaints are received and managed by related personnel in sales department.
The process include careful analysis of the returned goods is done and determines the cause of rejection and on that basis appropriate steps are taken. However in case of legitimate complaint following steps are followed
A sales return receipt is received along with the returned goods. First manual entries are posted in books of related accounts then a computerized update of account is printed.
The goods receipt is posted in the appropriate account of the client to update record and adjust the balances under that client account.
Warehouse stock postings are updated on return of goods.
Customer services department manages all sort of communications with clients and provide feedback both to company and customers.
Expansion of customer base is very important for any business success and many activities are carried out in order to increase loyal customers and expand business.
Ultra Chemicals use various methods to develop relationships with customers.
Exhibitions are arranged on various occasions attracting interested clients. Participations in trade fairs are made because people from various and concerned industries also participate in trade fairs that provide a platform for developing relations with customers.
Further Ultra Chemicals also advertise in "Engineering & Industrial Review" magazine to attract and communicate with customers. Company produce catalogs providing detailed information about products and their applications. Brochures are also distributed among customers. Customers are contacted by phone from time to time. Mails are send to them informing about products and their uses also customers can visit company's website and get information about product offerings. Company also provide customer service by solving customer problems.
Customer retention is very important in today's competitive world. Organizations develop policies to retain their customers and converting normal customers to loyal customers. Customer retention is more beneficial than acquiring customers because retention costs less than acquisition and company would be able to service for a longer period.
There are different types of customers like customer by repetition, loyalty, chance, occasion and choice.
Ultra Chemicals retain its customers by offering attractive prices, technical services, service quality feedback and logistics. Customers are also retained by focusing on the customization of their requirements and a customer friendly way to launch and resolve complaints.
Ultra Chemicals attract new customers by participating in various activities like exhibitions, trade fairs, publishing in Engineering & Industrial Review magazine. Developing product catalogs, brochures and interaction through company website. Maintaining constant communication with customers, quick response to their needs, maintaining standards and by giving customers special attention helps in attracting new customers.
There are many types of customers. A difficult customer can be very challenging for a firm. A difficult customer can be in different moods of rejection, objection, complaint hypocritical and Indifference. To handle such customers first listen patiently to his complaint and if it's genuine solve the issue and compensate the loss else be courteous and logically explain the issue and respond calmly and professionally.
Ultra Chemicals first analyze and observe the nature of problem. The problem may depend on the complaints regarding product use, handling and logistics, For example we supplied two drums of Ultra SP-470 (water reducing and retardening admixture) on a construction of a commercial building. The client complained the supplied products of SP-470 is not properly sealed. They immediately contacted to the relevant sales agent and informed him about the problem. The sales representatives visited the site and inspected the material. The complaint was genuine and the products were replaced with new ones.
Ultra Chemicals is struggling to achieve a prominent position in growing construction industry, though the company has a good reputation and value in the market, but the competition toady require much more effort to stay contemporary in operations and innovation. In order to achieve this objective the processes needs to be carried out in more standardized ways to save time and costs associated with various operations, from production to sales.
Ultra chemicals works in an industry that produce and consume durable goods and more is the consumption of these goods would indicate a strong economy. However economic conditions in Pakistan is not much stable, this has brought the industry as a whole and the company to work under tight conditions.
There are some shortcomings in the marketing department of Ultra chemicals and few in general operations. The large portion of company's revenue is generated through sales therefore require a careful marketing and sales strategies.
Despite its expert marketing and sales force, company still needs to recruit and increase the number qualified skill professionals in its work force that can respond to customer queries technically and efficiently and to grow market share for success.
As an internee in marketing department I noticed that the theory about marketing and management we studied in during the course of my MBA program, the core concepts of marketing, basic purpose of marketing operations are not exactly applied while carrying out the normal marketing activities. Marketing is perceived as limited to selling, advertising and promotional activities but it is more than that, it identifies and satisfies customers needs, creates value for customers, produce a product what customer wants, pricing, promoting and selling the product. On the other hand sales department focuses on meeting consumer demand and try to match that demand match the product that a company produce.
In a marketing process there is a two way communication between a salesperson and customer so learning can take place and the products being offered can be improved.
However there is no clear distinction in marketing and sales department of Ultra Chemicals. Marketing targets should be set first followed by the sales activities. It seems like the sales activities have dominated the marketing activities and is doing most of the work for providing research and promotional activities of the target market for marketing department along with its traditional activities of selling.
Selling is one of the activities of the whole marketing process which is diverse and innovative, effective sales are dependent on a good marketing plan and this is where Ultra chemicals have a major drawback in devising the sequence of strategies of marketing and sales.
In order to create value for products and services there should be an efficient supply chain management system. Ultra Chemicals supply chain is not much efficient rather rely mostly on distribution strategies for creating value.
One important thing that I observed during my internship was that in theory a firm identify in its marketing plan its target market segment and based on that it develop strategies to meet the needs of that segment. The company targets a large construction industry with same products and at the same time also targets the niche segment with the same products due to the nature of its business.
Ultra Chemicals should hire marketing professionals and increase budget of the marketing department in order to redefine and restructure its activities to attain standard in its marketing operations.
Also the finance department of ultra Chemicals is not efficient in making good financial strategies. The human resource department needs to recruit more professionals and increase the salaries of employees so that they will be motivated.
Quick technical support
Strong base of loyal customer
Highly trained workforce
Ability to compete in dynamic environment
Sell directly to customers
Keep costs below competitor costs
Educated labor force at low cost
Adequate availability of raw materials and natural resources
Globally not well known
Less mega approach
Limited range of products
Low quality of several products
No proper feedback and services
Only targeting domestic markets
No strong relationships with construction architects for product referral
Advance skills requirements with aging workforce can develop a skill gap in workforce
No customer base in remote areas.
Long distance between project sites slows down business efficiencey
Offer services and logistics in many cities of Pakistan
More innovative variety can be added to product category
Low price and good quality of many products
Internet can help in marketing activities
Financial support can help in growth of the company
Government may start a mega project in the country like dams etc in future
Private sector housing development can bring more business to the company
Can use social networking sites to increase products awareness
Prolonged uncertainty and instability can have negative affect on opportunities
Competitors also have strong brand names of value in market.
Competitors have strong relationships with consultants and architects.
Real state development is on the downside affecting the industry
Unstable political and economic conditions
Limited government sponsored projects are affecting the industry and growth
Increasing competition among competitors can lead to price war
Bargaining power of buyers under monopolistic competition
In coming year's construction chemicals industry in Pakistan will have to overcome various issues regarding environment, housing, transportation and natural hazards. Professionals in this industry will have to develop innovative and skillful project handling strategies to overcome these issues. This industry in the past has been a great support to construction industry and in very much dependant on it. However revenues generated by mega projects will help the construction chemicals industry to improve economy and working conditions.
Ultra Chemicals offers a wide range of construction chemicals to serve commercial and residential construction industry by utilizing research, experience and expertise to provide expert service through support teams committed to serving valued customers throughout the country. Working in this company helped me in gaining very useful knowledge about various technologies that are used in construction industry. This form of technology is missing in our traditional masonry specially in the housing sector, that are faced with typical flaws of poor structural base, water leakage and short life of cement coatings of the walls. The internship in the marketing department not only help me in marketing skills but during the course I also learned valuable technical knowledge.
Ultra Chemicals can adopt following recommendations for improvement
Increase marketing budget
Educate target market by infomercials
Incorporate research and development department
Expand brand portfolio
Improve employee skills by timely training sessions
Introduce interactive website
Complete information about sales outlets, addresses, contact details, company profiles and locations should be available according to geographic locations
Demo should be placed on website on how to use the products
Incorporate focus group activities to make better decisions
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