Proposed ACFA Product range

ACFA Marketing Plan




































1

Background








Saudi Market overview


























2

KSA Building Construction info









• The building construction sector in KSA is expected to surge in the

long term as the construction market grows.




• Currently, KSA’s construction sector faces an uncertain 2017 due to

the budgets cuts in the public sector.



• Slowdown in the government awarding work over the last year.



• Along with lack of liquidity to finance projects. Although the market


is expected to improve, there remains a fiscal deficit.



• With the start of VAT policies in the near future, it may become a


crucial pricing factor.







Source: comtrade.un.org 3

KSA Building Construction info








Cutbacks in public expenditure: The drop in oil prices has had an

adverse impact on KSA’s economic activity in 2016. The economy is

already contracting due to public spending cutbacks and the

government’s cash management problems.







Construction Sector: The government has raised fuel and water prices
and it has also had an adverse impact on the construction sector. The


sector has witnessed prolonged delays in payments and several
ongoing construction projects are on hold. Major construction

companies














Source: comtrade.un.org 4

KSA Building Construction info













Labor scarcity and shortage: The country is facing an acute shortage of

labor, especially designers and experienced workers in the construction

industry. This in turn also affects the deliverables of the projects.
































Source: comtrade.un.org 5

KSA Building Construction info






Saudi Vision 2030 aims to minimize the kingdom’s reliance on oil as a

revenue source and promote economic diversification.


The Vision aims to raise non-oil revenues to $160 billion by 2020.

Vision 2030 has three themes:


• “A Vibrant Society”,


• “A Thriving Economy”,


• “An Ambitious Nation”.























Source: comtrade.un.org 6

KSA Building Construction info






From an overall future perspective, fiber Cement boards usage in Saudi Arabia is expected
to witness moderate growth in the upcoming years due to :-






• The growing preference for building construction.


• High imports into the country.


• Approving &allowing Saudi building code that will allow more & better opportunities
in the construction field .


• Saudi ministry of housing is planning to build 1.5M house by 2020 .


With foreign investments across the Real state ,hospitality, education and healthcare
sectors, the Kingdom’s building materials market is expected to open up opportunities for

the FBC industry in the long term.


but the market will also show signs of weakness in the public and construction sector. This
weakness could trickle into other sectors of the economy, which might restrain the

market. As the FCB sector is highly dependent on the construction market growth, it is
important to closely monitor the growth of KSA construction sector with major focus on

government strategy & diversification, project financing as well as project delay schedules.



7

Table of Content









• Organizational Chart



• Situational Analysis



• SWOT analysis



• Critical Issues



• Objectives



• Marketing strategy



• Goals & Milestones



• Actions








8

Marketing & sales staff structure




local Market
































9

General Manager







Marketing &
Sales Manager
Commercial
assistant
National Sales
Manager


Web site &
social media
coordinator







Jeddah Dammam Riyadh ABHA

Sales Manager Sales Manager Sales Manager Sales Manager






Project Sales&
Sales. rep Sales. rep institutions .rep Sales.rep Sales .rep








10

Marketing & sales staff structure




Export Market
































11

General

Manager







Marketing &

Sales Manager








Kuwait Sales Qatar Sales UAE Sales Egypt Sales Sudan Sales

Manager Manager Manager Manager Manager







Sales Rep Sales Rep Sales Rep Sales Rep Sales Rep


Year 2 Year 2 Year 2 Year 2 Year 2








12

Situational Analysis









• Situational analysis


• Market Size & growth


• Segmentation: Size


• Segmentation : Country of Origin


• Performance :Wholesale

• Performance : Project


• Performance : Export


• Purchase drivers


• Competitive Analysis .












13

Marketing Audit


































14

Situational Analysis



Market Size & growth





• Estimated local market size in:-


• 2011 to 2015 is: 124,000 ton (5 years)

• 2015 Only is : 51,000 ton

• Estimated Export market size in:-


• GCC countries (4) :198,000 ton (2011 – 2015)


• MENA (7) : 37,000 ton (2011- 2015 )


• African country (7) : 65,000 ton ( 2011 – 2105)



• Growth percentage in KSA market is 50% ( over 5 years 2011- 2015)

• ACFA building solution company is the newest Saudi market player



• FCB market is not recognized by manufactured ‘s brand but by the

country of origin .






15

Situational Analysis









• Situational analysis


• Market Size & growth .


• Segmentation : Size &Country of Origin for local Market


• Performance : Export


• Purchase drivers

• Competitive Analysis .
























16

FCB for







local Market Size





























17

KSA import FCB from world (over 5 years)




















124, 000 Ton






















2011 up to 2015






Source: comtrade.un.org 18

Top 6 countries over 5 Years (700 ton & above)














121, 000 Ton



























India ,China ,Thailand , other Asians
Malaysia &Philippine


Source: comtrade.un.org 19

Top 6 countries that Export FCB to KSA





2011- 2015




Country Quantity in KGs On year





India 82,424,000 All 5 years





China 32,735,000 All 5 years




Thailand 1,812,000 2014 Only





Other Asians 920,000 2012 only




Malaysia 810,000 2011 only





Philippine 705,000 2013 only




Total 6 Countries 121,000 ton
20

Segmentation



Standard size of 1.2X2.4/ country of Origin over 5 years








European
Source India China Thailand Malaysia Philippine Other Asian
countries













QTY in tons 84,000 33,000 2200 1700 1300 1700 256















% 68 16 1.8 1.4 1 1.4 0.2






21

2015 Only








KSA import FCB from world





















51, 000 Ton





















India 82 %, china 18%



Source: comtrade.un.org 22

2015 Only



KSA import FCB from world
























































23

2016


KSA import FCB from world

























































24

25

Top 2 countries that Export FCB to KSA





2015 Only







Country Quantity in KGs On year











India 41,084,000 2015 only










China 9,015,000 2015 only










Total 2 Countries 51,000 ton






26

Trend of Importing FCB







FCB importing trend over last 5 years 2011-2015 in total of 124,000 Tons



60000



50,609
50000


63 %
40000



40 % 30,971
30000

48% 22,115

20000
14,970


10000 137%
6302




0
2011 2012 2013 2014 2015


2011 2012 2013 2014 2015 27
Source: comtrade.un.org

FCB Export Markets Size










Gulf ,Asia, Middle East &North Africa


























28

Country Quantity in KGs On year




Qatar 35,467,550 2013- 2015 (28 countries)

UAE 152,519,790 2012To2015 (45 countries)


Kuwait 5,837,246 11,14&15 (10 countries)

Bahrain 4,035,812 All 5 years (14 countries)


Brunei 2,829,562 2012-2014 (13 country)
Malaysia then china

Azerbaijan 27,371,183 ALL 5 YEARS(9 Countries)

Kazakhstan 4,201,642 ALL 5 YEARS(10 Countries)


MENA 844,387 All 5years (10 countries)
Egypt

Jordan 2,422,416 All 5years (13 countries include KSA,UAE&USA)



Turkey 30,846,305 All 5 years (13 countries)


Sudan 176,679 2012&15 only (china & Egypt)


Morocco 32,607 2015 only( 4 European countries only)

Algeria 2,632,652 All 5 years (14 countries)




Tunis 97,762 All 5 years (9 countries)
29

FCB Export Markets Sizes







African countries



























30

Country Quantity in KGs On year



2011 ,12&13 (26countries)
Ghana 1,781,892
Israel ,UAE,Oman included

2011 To 2014 (16 countries)
Nigeria 3,595,500 Algeria,UAE,Greecs .India



2012 ,14&15 (26countries)
Niger 58,174 Germany &China only


All 5 years (11 countries)
Zambia 2,196,596



All 5 years (19 countries)
Tanzania 1,629,376 Very open country .. Austaralia ,china,USA,Africa,Oman UAE

2013 Only ( 5countries)
Kenya 160,876 Germany ,China ,india,Egypt,england


All 5 years (31 countries)
South Africa 50,128,411 Argentina ,USA ,Africa



Burkina Faso 16,630 2011.12 &13 only
Ghana,cote devoir &Italy only

Mozambique 1,588,633 2011,12,13&14(10 countries)


Capo Verde 320,249
All 5 years ( 6countries)

3,575,270 All 5 years ( 21 countries) KSA included
Angola

91,214
Cameroon 31
2013 – 2015 ( 11 countries)

Targeted countries for





ACFA FCB






























32

Country Quantity in KGs On year




Asia



Qatar 35,467,550 2013- 2015 (28 countries)


UAE 152,519,790 2012To2015 (45 countries)


Kuwait 5,837,246 11,14&15 (10 countries)


Bahrain 4,035,812 All 5 years (14 countries)


MENA


Egypt (Hub) 844,387 All 5years (10 countries)

Sudan (Hub) 176,679 2012&15 only (china & Egypt)


Jordan 2,422,416 All 5years (13 countries include KSA,UAE&USA)




Turkey 30,846,305 All 5 years (13 countries)


Algeria 2,632,652
All 5 years (14 countries)

Morocco 32,607
2015 only( 4 European countries only)
Tunis 97,762 All 5 years (9 countries)


33

Expected growth for FCB Saudi market







Next 5 years




100000
90,000
90000
84,000
78,277
80000
74,500
71,000
70000 7 %


60000
7 %
50000


40000 5 %


30000

20000
5%

10000


0
2018 2019 2020 2021 2022



2018 2019 2020 2021 2022 34

Situational Analysis









• Situational analysis


• Market Size & growth .


• Segmentation : Size &Country of Origin


• Competitive Analysis .































35

Local Market Competition





































36

G-board Company











• Location:



• Head office :Faysal Bin Fahd Street, Al Chate District Jeddah KSA
•

Plant : Yanbu Al Sanaiyah 51000-KSAPrince .





• Actual (May 2017)production capacity of FCB : 3000 -3400 ton/month

• Middle East ,GCC& international Sales division : Amman ,Jordan .



• Its FCB products come under the name of “G.board”



• Products application : Per Internal Only.













37

Situational Analysis






Criteria Unicem G.board ACFA




Targeted Segments Mid, upper Mid Low , Mid Low, Mid, Upper Mid &top class




Distribution Low moderate Not yet




Product design Basic plain Basic plain Basic plain &Quality appeal







Price positioning (overall) SR.50 = 9mm SR.50 = 9mm SR.1400 /ton

(Retail to end-user) SR.60 = 12mm SR.60 = 12mm









Interaction with customer Poor good Not yet








Customer Service Not Available Not Available Needs to Be activated Properly
38

Table of Content









• Organizational Chart .



• Situational Analysis



• SWOT analysis



• Critical Issues



• Objectives



• Marketing strategy



• Goals & Milestones



• Actions








39

SWOT Analysis


































40

Strengths: Opportunities:








• Huge manufacturing facilities, fully automated. • High demand market (locally & Export Market)
• Factory premium location ,Sudair city( middle of all destinations). • we offer very wide range of products
• European technology (Italian know how). • We offer unique product quality .

• After S.Services, technical&installation consultancy . • Launching our new brand name ACFA FCB.
• Competitive price for all products in range. • Penetration in all Export market ( around area).

• Distinguished customers illustrative tools . • Being pioneer of FCB manufacturer with deco line in the region .
• Int. products certification &reliable test reports . • Applying state of art technology on FCB manufacturing .
• Free services ( design , site advises & transportation ).

• Being customer centric co. that conduct all required marketing
activities to customers ( as B2C not only B2B) .




Weaknesses: Threats:




• Completely new company w/o production history or project • Competitors reaction to our growth driver actions .

references ( business records). •
• Poor information &data base for local &Export market . Imitation or any new comers.
• No brand presence yet. (catalogs/display tools, web site, • Market still in recession status w/o clear future indications .

merchandising).
• No interaction with the buying process members yet .
• Un known product ranges that will be produced. 41

• Avaibilty of specialized staff for decorative products

Table of Content








• Organizational Chart .



• Situational Analysis



• SWOT analysis


• Critical Issues



• Objectives


• Marketing strategy



• Goals & Milestones



• Actions


• Budget







42

Critical Issues








• Finalization of production facility in order to start trials & commissioning .



• Clarify the producible product range & its related configuration .



• Developing the needed products credential certificates.



• Considering printed boards as part of the product range.



• Hiring specialized technical team for production&training of decorative lines.



• Conduct installation sessions for the main contractors staff .



• Hiring the needed qualified sales &Marketing staff on time.



• Improve staff response to the needed corporate tasks .













43

Table of Content








• Organizational Chart .



• Situational Analysis



• SWOT analysis


• Critical Issues



• Objectives


• Marketing strategy



• Goals & Milestones



• Actions


• Budget







44

Objectives








• Achieve 42,000 Ton sales by the end of Year One.



• Insuring product presence &full penetration in customer’s shop .


• Establish authorized distribution network :-


• Intended # of outlets kingdom wide is 80 outlets


• ( 30 Riyadh ,20 Jeddah.20 Dammam & 10 Abha)

• Open our own Riyadh Showroom/ store .


• Open new warehouse in Jeddah


• Open new warehouse in Dammam.



• Complete our marketing strategy development project for added Value


Products by Q2 Year Two .









45

Table of Content








• Organizational Chart .



• Situational Analysis



• SWOT analysis


• Critical Issues



• Objectives


• Marketing strategy



• Goals & Milestones



• Actions


• Budget







46

Marketing Strategy








Strategic frame work



Marketing Strategy





















47

ACFA Three Years Strategic Marketing Framework

















Year One Year Two Year Three











• Brand Development • Brand awareness • Differential

Infrastructure • Mass interaction with all Communication

• Launching Plain FCB target audiences . • Above The Line

• Focused targeting • Deco. Products Launching activities (ATL)













48

Marketing Strategy








Strategic frame work



Marketing Strategy





















49

Strategy





Products

Growth Matrix

Current New





• Year One to focus on basic
FCB (Plain one) with different •Year two Launching ACFA Brand
Current •Launch ACFA Sandwich panel
thickness & densities. •Launching Deco Products

• For distribution network

Channels KSA KSA





•Product Development
•FCB to projects Sector .
•Deco products to Selective retailer &



Export:
New
Export :
• institutions.
Targeting GCC Targeting GCC

,MENA + Africa Mena + Africa




50