Industrial Marketing Project

Group Members :
Adil Masood
Kamran Naseer
Wood has been used for hundreds of thousands of years for both fuel and
as a construction material
The earth contains about one trillion tons of wood, which grows at a rate
of 10 billion tons per year.
In 1991, approximately 3.5 billion cubic meters of wood were harvested.

Dominant uses were for furniture and building construction.
History
the earliest known plants to have grown wood, were approximately 395
to 400 million years ago.
People have used wood for millennia for many purposes, primarily as a
fuel or as a construction material for making houses, tools, weapons,
furniture, packaging, artworks, and paper.
Rabeel Enterprises
Smmexport Industries Ltd
Isha Exports Co,
Longways Carpets Pvt Ltd
Tradeline International
A.M.Corporation
Al-Rafi
Asian Furniture Works Pvt Ltd.
Gathering information on potential markets is often overlooked by

wood products firms.
Good marketing research can prevent premature attempts to

enter a market that should not have been entered in the first place
Asking knowledgeable customers and looking at your competitors

can be a good way to know the market.
The wood products industry is changing. We face new forms of

competition from within our own industry and from other
products
Plastics and steel now directly compete in traditional wood

markets.
Firms should never be so shortsighted as to think they only provide

customers with a physical product. In today's marketplace it takes more
than that to compete.
Often services can be a deciding factor when choosing among firms

providing a commodity product such as softwood lumber.
When considering products such as softwood or hardwood lumber, for

example, it is critical to consider things like credit, service, quality and
delivery.
This view is known as the total product concept (TPC). The concept
includes all of the intangibles and extras that are both perceived and paid
for by the customer.
The TPC is especially true in the commodity market, where price is often
used as the only method of differentiation.
Commodity Products (raw material)
Standard industry product line (timber, lumber, woodbase fibers, commercial softwoods and hardwoods,
wood preservatives, laminated timber, and composite
lumber)
Specialty Products (redwood, pine, composite

decking and framing and wood siding)
Customized products (we will also deliver wood

tailored exactly to the customer demands such as
shape and size)
Differentiating Factors
Our major differentiating factor is our effective supply
chain
Moreover, we offer customized products and specialty
product
Competitive Environment
This relates to the amount of control the manufacturer
has over price. We are operating in a company-controlled
environment there is strong control over pricing.
Moderate competition and highly differentiated products

are characteristic of this type of environment.
Product Positioning
We have positively positioned our product in

relation to a competitor's products
We will be offering customized products and our

firm has a high advertising budget which we will
use in our favor to position our product (wood)
and services (for example effective supply chain)
high in the wood industry.
target Customers
We will be targeting furniture manufacturers, wooden

interior decorators and the industry that uses wood as
a raw material for example the paper industry.
New product development programs
We are planning to process wood into finished goods

in the later stages of our firm.
We are basically planning to get into forward
integration i.e. enter into the furniture market
The price of a product has to include a number of variables in

addition to just the product cost.
For instance, the cost of producing the actual product, marketing

that product, transportation, packaging, insurance, and any
necessary taxes
Pricing Objectives
Setting a price is also partly a function of what direction the

company is trying to take
we will look to maximize our profit through effective pricing

strategy and try to differentiate our product on the basis of quality
and service that we provide to our customers.
We will be using demand based strategy.
This type of strategy determines the price of the product based on

what the market is willing to pay.
often customer value/quality associations and perceptions allow

for a higher margin to be obtained than when using a set costbased strategy
Another strategy that we will use concurrently with one

mentioned discussed is price adjustments
Basically this involves giving discounts on price for various reasons

e.g. for large purchase volumes, seasonal reasons, or to
compensate channel intermediaries for covering costs such as
freight and storage.
The key objectives of promotion are to inform, persuade, and/or remind.

The tools for promotion includes Advertising, Personal Selling, Sales
Promotion, and Publicity
Advertising
Advertising is a paid form of non-personal presentation of a good,
service, or idea.
Advertising can be done through many different types of media. These
can include:
o
o
o
o
o
o
o
o
Radio
TV
Magazines
Newspapers
Billboards
Direct Mail
Business Cards
Letterhead
Personal Selling
Personal selling is often used in the wood industry and has become
a very important way of getting new customers.
Sales Promotion
Sales promotion is a non-personal communication in the form of
free samples, coupons, point-of-purchase literature, trade shows,
contests, etc.
This is an especially effective way to introduce newer products
Publicity
Publicity includes non-paid methods of disseminating information
about the firm, its products and services.
This can be a valuable method for creating positive public
perception of our firm.
Direct Sales
This is a direct and effective method for finding

and acquiring potential customers
This may not result in a sale every time but it

gets your product and name circulating within
the industry.
We will be using all four promotional tools as our

firm is new and we want to attract new
customers quickly.
We will be operating in Pakistan and headquarter will be in Muzaffarabad

which is the main hub for wood
we will have our further distribution channels in major cities of Pakistan

including Lahore, Karachi, Islamabad and Peshawar.
Our major market however, exists in chiniot for which we will have a
separate division to deal with.
Distribution
Distribution systems are organized into channels. These channels are an
organized set of institutions whose goal is to move goods from point of
producing(Northern areas) to point of consumption(chiniot and other
cities).
The institutions that exist within these distribution channels are known
as intermediaries or middlemen.
Maintain contact with buyer

Negotiate price and delivery
Establish contracts and delivery
Transfer title
Provide credit/collection
Service product and provide other services
Provide inventory/storage
Arrange transportation
Intermediaries can be divided into two broad groups, these are Agents
and Merchants.
The main difference between the two is that agents typically do not take
title to the goods they handle. Merchants, on the other hand, usually do
take title to the products they sell. Some specific examples are shown
below:
o
o
Agents
Brokers
Manufacturer's Rep
o
o
o
o
o
Merchants
Reload Centers
Lumber Trading Companies/Office Wholesaler
Wholesaler/Distribution Yard
Industrial Distributor
Jobber
Go direct or use intermediaries

We will be distributing our product through both
direct and intermediaries depending on the location

and size of the customer
Distribution intensity
Our distribution intensity will be high as we have our
own warehouses and we will use this to our maximum

advantage
Channel ownership
We will have different market strategy for different
markets.
The actual physical handling and subsequent

delivery of products represents a significant
portion of total costs of goods.
Costs are clearly important as well and the total

cost concept seeks to maximize the
effectiveness of the entire distribution channel,
rather than one piece at-a-time.
Our logistics concept will be on total product

concept.
In summary, marketing is a primary determinant

of company success.
Our goal is to identify what customers want and

need on a continual basis
Our company has a good understanding of

markets and we will implement a well thought
out marketing program to meet customer needs
which will gain us an advantage in the 21st
Century.

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Group Members :

In 1991, approximately 3.5 billion cubic meters of wood were harvested.

Gathering information on potential markets is often overlooked by

Good marketing research can prevent premature attempts to

Asking knowledgeable customers and looking at your competitors

The wood products industry is changing. We face new forms of

Plastics and steel now directly compete in traditional wood

Firms should never be so shortsighted as to think they only provide

Often services can be a deciding factor when choosing among firms

When considering products such as softwood or hardwood lumber, for

Commodity Products (raw material)

Specialty Products (redwood, pine, composite

Customized products (we will also deliver wood

Moderate competition and highly differentiated products

We have positively positioned our product in

We will be offering customized products and our

We will be targeting furniture manufacturers, wooden

New product development programs

We are planning to process wood into finished goods

The price of a product has to include a number of variables in

For instance, the cost of producing the actual product, marketing

Setting a price is also partly a function of what direction the

we will look to maximize our profit through effective pricing

We will be using demand based strategy.

This type of strategy determines the price of the product based on

often customer value/quality associations and perceptions allow

Another strategy that we will use concurrently with one

Basically this involves giving discounts on price for various reasons

The key objectives of promotion are to inform, persuade, and/or remind.

This is a direct and effective method for finding

This may not result in a sale every time but it

We will be using all four promotional tools as our

We will be operating in Pakistan and headquarter will be in Muzaffarabad

we will have our further distribution channels in major cities of Pakistan

Maintain contact with buyer

Go direct or use intermediaries

direct and intermediaries depending on the location

own warehouses and we will use this to our maximum

The actual physical handling and subsequent

Costs are clearly important as well and the total

Our logistics concept will be on total product

In summary, marketing is a primary determinant

Our goal is to identify what customers want and

Our company has a good understanding of

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